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25.09.202416:11 Forex Analysis & Reviews: USD/JPY: Simple Trading Tips for Beginner Traders on September 25 (U.S. Session)

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Analysis of Trades and Tips for Trading the Japanese Yen:

The test of the 143.50 price level occurred when the MACD indicator was just beginning its upward movement from the zero mark, which confirmed the correct entry point for buying the dollar. Consequently, we observed growth towards the target level of 143.87, securing around 40 points in profit. Later today, we anticipate significant statistics that could provide additional support to the dollar. If the data on U.S. new home sales for August surpass economists' forecasts, we might see a new surge in the pair's growth. Otherwise, USD/JPY may face renewed pressure. For my intraday strategy, I will follow the implementation of scenarios #1 and #2.

Exchange Rates 25.09.2024 analysis

Buy Signal:

  • Scenario #1: Today, I plan to buy USD/JPY when the price reaches approximately 144.49 (indicated by the green line on the chart), aiming to rise to 145.00 (highlighted by a thicker green line). At 145.00, I will exit the position and initiate sales in the opposite direction, expecting a movement of 30-35 points. A rise in the pair is anticipated today following strong U.S. data. Important: Before buying, verify that the MACD indicator is above the zero mark and is beginning to ascend.
  • Scenario #2: I also plan to buy USD/JPY today if there are two consecutive tests of the 144.08 price level while the MACD indicator is in the oversold zone. This will restrict the pair's downward potential and is likely to lead to an upward market reversal. Growth towards 144.49 and 145.00 can be expected.

Sell Signal:

  • Scenario #1: I intend to sell USD/JPY today once the 144.08 level (marked by a red line on the chart) is reached, likely leading to a rapid decline in the pair. The primary target for sellers will be 143.45, where I will exit the sales and immediately initiate purchases in the opposite direction, anticipating a move of 20-25 points. Seller activity will intensify if there is strong U.S. data and no buyer activity near the day's high. Important: Before selling, ensure that the MACD indicator is below the zero mark and is starting to decline.
  • Scenario #2: I also plan to sell USD/JPY today if there are two consecutive tests of the 144.49 price level when the MACD indicator is in the overbought zone. This will limit the pair's upward potential and should lead to a downward reversal. Declines towards 144.08 and 143.45 are anticipated.

Exchange Rates 25.09.2024 analysis

What's on the Chart:

  • Thin green line: Entry price for buying the trading instrument.
  • Thick green line: Target price for setting Take Profit or manually securing profits, as further growth above this level is unlikely.
  • Thin red line: Entry price for selling the trading instrument.
  • Thick red line: Target price for setting Take Profit or manually securing profits, as further declines below this level are unlikely.
  • MACD Indicator: It's crucial to monitor overbought and oversold zones when entering the market.

Important Tips for Beginner Forex Traders: It's vital to exercise extreme caution when entering the market. Before the release of significant fundamental reports, it is best to remain out of the market to avoid exposure to sudden price fluctuations. If you decide to trade during news releases, always set stop-loss orders to minimize losses. Without stop-loss orders, your entire deposit could be quickly depleted, especially if you trade large volumes without employing proper money management strategies.

Remember, successful trading requires a clear trading plan, like the one presented above. Spontaneous trading decisions, based solely on current market conditions, are fundamentally flawed strategies for an intraday trader.

Eseguito da Jakub Novak
Esperto analista di InstaForex
© 2007-2024

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