27.12.202415:09 Forex Analysis & Reviews: USD/JPY: Simple Trading Tips for Beginner Traders on December 27th (U.S. Session)

Analysis of Trades and Tips for Trading the Japanese Yen

The first test of the 157.90 level coincided with the MACD indicator moving significantly above the zero mark, limiting the pair's upward potential. For this reason, I did not buy the dollar. The second test of this price shortly after occurred when the MACD indicator was in the overbought area, allowing Scenario #2 (sell strategy) to execute, leading the pair to the target level of 157.68.

The U.S. goods trade balance and changes in wholesale inventory volumes are the only significant data scheduled for the second half of the day. Strong statistics could prompt another attempt at USD/JPY growth, but such movement is unlikely to be sustained. Weak statistics will increase downward pressure on the pair, so I recommend trading within a sideways channel. Regarding the intraday strategy, I will rely on the implementation of Scenarios #1 and #2.

Buy Signal

Scenario #1: I plan to buy USD/JPY today at the 157.82 entry point (green line on the chart) targeting a rise to 158.13 (thicker green line on the chart). Around 158.13, I will exit purchases and open sell positions in the opposite direction, aiming for a 30-35 point move. Growth in the pair is likely only within the sideways channel.Important! Before buying, ensure that the MACD indicator is above the zero mark and just starting to rise from it.

Scenario #2: I also plan to buy USD/JPY today in case of two consecutive tests of the 157.56 level when the MACD indicator is in the oversold area. This will limit the pair's downward potential and lead to a reversal upward. Growth toward 157.82 and 158.13 can be expected.

Sell Signal

Scenario #1: I plan to sell USD/JPY today after the 157.56 level is breached (red line on the chart), leading to a quick decline in the pair. The key target for sellers will be 157.37, where I will exit sales and immediately open buy positions in the opposite direction, aiming for a 20-25 point move. A return of pressure on the dollar today is unlikely.Important! Before selling, ensure that the MACD indicator is below the zero mark and just starting to decline from it.

Scenario #2: I also plan to sell USD/JPY today in case of two consecutive tests of the 157.82 level when the MACD indicator is in the overbought area. This will limit the pair's upward potential and lead to a reversal downward. Declines toward 157.56 and 157.37 can be expected.

Chart Details:

• Thin Green Line: Entry price for buying the trading instrument.
• Thick Green Line: Projected price for setting Take Profit or manually locking in profits, as further growth beyond this level is unlikely.
• Thin Red Line: Entry price for selling the trading instrument.
• Thick Red Line: Projected price for setting Take Profit or manually locking in profits, as further declines beyond this level are unlikely.
• MACD Indicator: It is essential to monitor overbought and oversold zones when entering the market.

Important Notes for Beginner Traders:

Beginner traders in the forex market must exercise caution when making market entry decisions. It is best to avoid trading before significant fundamental reports to prevent sharp price fluctuations. If you decide to trade during news releases, always set stop-loss orders to minimize losses. Without stop-loss orders, you could quickly lose your entire deposit, especially when trading large volumes without proper money management.

Remember, successful trading requires a clear plan, such as the one outlined above. Making impulsive trading decisions based on current market conditions is inherently a losing strategy for intraday traders.