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Analysis of Trades and Trading Tips for the Japanese Yen
The test of the 152.01 level occurred when the MACD indicator had just started moving up from the zero mark, confirming a valid entry point to buy the pair in support of the upward trend. As a result, the growth was around 20 pips, allowing only to cover the losses incurred from a similar entry made earlier in the day. Today's figures on Japan's monetary base changes did not impact the market, as attention remains focused on the U.S. election. A Trump victory could lead to further weakening of the dollar and strengthening of the yen. I will primarily rely on implementing scenarios #1 and #2 for the intraday strategy.
Buy Signal
Scenario #1: Today, I plan to buy USD/JPY upon reaching the entry point around 152.58 (green line on the chart) with a target of rising to the 153.02 level (thicker green line on the chart). Around 153.02, I plan to exit the buy position and open a sell position in the opposite direction, aiming for a move of 30-35 pips from the entry level. Growth is possible, but it is best to buy on pullbacks. Important! Before buying, ensure that the MACD indicator is above the zero mark and starting to rise.
Scenario #2: I also plan to buy USD/JPY today if there are two consecutive tests of the 152.15 level while the MACD indicator is in the oversold area. This will limit the pair's downward potential and trigger an upward market reversal. A rise toward the opposite levels of 152.58 and 153.02 can be expected.
Sell Signal
Scenario #1: Today, I plan to sell USD/JPY only after breaking below the 152.15 level (red line on the chart), which will lead to a quick decline in the pair. The key target for sellers will be 151.65, where I plan to exit the sell position and immediately open a buy position in the opposite direction, aiming for a move of 20-25 pips from the entry level. Selling pressure will return if the correction attempt fails in the first half of the day. Important! Before selling, ensure that the MACD indicator is below the zero mark and starting to decline.
Scenario #2: I also plan to sell USD/JPY today if there are two consecutive tests of the 152.58 level while the MACD indicator is in the overbought area. This will limit the pair's upward potential and lead to a downward market reversal. A drop toward the opposite levels of 152.15 and 151.65 can be expected.
Chart Indicators:
Thin Green Line – Entry price to buy the instrument.
Thick Green Line – Suggested price level for setting Take Profit or manually taking profits, as further growth beyond this level is unlikely.
Thin Red Line – Entry price to sell the instrument.
Thick Red Line – Suggested price level for setting Take Profit or manually taking profits, as further decline beyond this level is unlikely.
MACD Indicator – When entering the market, consider overbought and oversold zones.
Important: Novice traders should exercise caution when entering the market. Before the release of significant fundamental reports, it is best to stay out of the market to avoid sudden price swings. If you choose to trade during news releases, always set stop orders to minimize losses. You may quickly lose your entire deposit without stop orders, especially if trading large volumes without proper money management.
Remember, successful trading requires a clear plan, like the above example. Spontaneous trading decisions based on current market conditions are inherently a losing strategy for an intraday trader.
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