empty
20.12.2024 03:13 PM
USD/JPY: Simple Trading Tips for Beginner Traders on December 20th (U.S. Session)

Analysis of Trades and Tips for Trading the Japanese Yen

The test of the 156.83 level occurred when the MACD indicator had moved significantly below the zero line, limiting the pair's downward potential. For this reason, I sold the dollar. Shortly afterward, another test of 156.83 took place with the MACD in the oversold zone, providing a good signal for implementing Scenario #2 for buying. However, no significant upward movement materialized.

Today, key U.S. economic data, including inflation indicators and economic performance metrics, will likely trigger market movements. The dollar will gain an advantage and resume its upward trend if the Core Personal Consumption Expenditures Index (the Fed's preferred inflation measure), along with consumer spending and income data for November, show growth. The University of Michigan's Consumer Sentiment Index and inflation expectations, along with a speech by FOMC member Mary Daly, will also be closely watched. Regarding intraday strategy, I will focus on Scenario #1 and Scenario #2.

This image is no longer relevant

Buy Signal

Scenario #1: Today, I plan to buy USD/JPY at 156.96 (green line on the chart) with a target of 157.55 (thicker green line on the chart). At 157.55, I will exit the buy trade and open sell positions in the opposite direction, anticipating a 30–35 point downward move from the entry point. This scenario relies on the continuation of the upward trend.Important: Before buying, ensure that the MACD indicator is above the zero mark and just starting to rise.

Scenario #2: I also plan to buy USD/JPY if there are two consecutive tests of the 156.61 level, with the MACD indicator in the oversold zone. This will limit the pair's downward potential and trigger a market reversal upward. Growth toward 156.96 and 157.55 can then be expected.

Sell Signal

Scenario #1: I plan to sell USD/JPY after breaking below the 156.61 level (red line on the chart), targeting 156.04. At this level, I will exit the sell trade and immediately buy in the opposite direction, anticipating a 20–25 point upward move. Selling pressure will only return after weak U.S. data.Important: Before selling, ensure that the MACD indicator is below the zero mark and just starting to decline.

Scenario #2: I also plan to sell USD/JPY if there are two consecutive tests of the 156.96 level, with the MACD indicator in the overbought zone. This will limit the pair's upward potential and trigger a market reversal downward. A decline toward 156.61 and 156.04 can then be expected.

This image is no longer relevant

Chart Overview

  • Thin green line: Entry price for buying the instrument.
  • Thick green line: Target price for taking profit or manually closing the trade, as further growth beyond this level is unlikely.
  • Thin red line: Entry price for selling the instrument.
  • Thick red line: Target price for taking profit or manually closing the trade, as further decline beyond this level is unlikely.
  • MACD Indicator: When entering the market, pay attention to overbought and oversold zones.

Important Notes for Beginner Forex Traders

  • Exercise extreme caution when entering the market, especially before key fundamental reports are released. It is better to stay out of the market during these times to avoid sharp price fluctuations.
  • If you choose to trade during news releases, always set stop-loss orders to minimize potential losses. Without stop-losses, you could quickly lose your entire deposit, especially if you trade large volumes without proper money management.
  • Always have a clear trading plan, like the one provided above. Making spontaneous trading decisions based on current market conditions is a losing strategy for intraday traders.
Jakub Novak,
Analytical expert of InstaForex
© 2007-2025
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST
  • Chancy Deposit
    Deposit your account with $3,000 and get $10000 more!
    In January we raffle $10000 within the Chancy Deposit campaign!
    Get a chance to win by depositing $3,000 to a trading account. Having fulfilled this condition, you become a campaign participant.
    JOIN CONTEST
  • Trade Wise, Win Device
    Top up your account with at least $500, sign up for the contest, and get a chance to win mobile devices.
    JOIN CONTEST
  • 100% Bonus
    Your unique opportunity to get a 100% bonus on your deposit
    GET BONUS
  • 55% Bonus
    Apply for a 55% bonus on your every deposit
    GET BONUS
  • 30% Bonus
    Receive a 30% bonus every time you top up your account
    GET BONUS

Recommended Stories

USD/JPY: Simple Trading Tips for Beginner Traders on December 31. Analysis of Yesterday's Forex Trades

Analysis of Trades and Trading Tips for the Japanese Yen The test of the 157.52 price level occurred when the MACD indicator had moved significantly downward from the zero mark

Jakub Novak 11:34 2024-12-31 UTC+2

GBP/USD: Simple Trading Tips for Beginner Traders on December 31. Analysis of Yesterday's Forex Trades

Analysis of Trades and Trading Tips for the British Pound The test of the 1.2582 price level occurred when the MACD indicator had moved significantly downward from the zero mark

Jakub Novak 11:32 2024-12-31 UTC+2

EUR/USD: Simple Trading Tips for Beginner Traders on December 31. Analysis of Yesterday's Forex Trades

Analysis of Trades and Trading Tips for the Euro The test of the 1.0433 price level occurred at a time when the MACD indicator was just starting to move downward

Jakub Novak 11:30 2024-12-31 UTC+2

USD/JPY: Simple Trading Tips for Beginner Traders on December 30. Review of Forex Trades

The first test of the 157.82 price level occurred when the MACD indicator had already moved significantly above the zero mark, which limited the pair's upward potential. For this reason

Jakub Novak 08:02 2024-12-30 UTC+2

GBP/USD: Simple Trading Tips for Beginner Traders on December 30. Review of Forex Trades

The test of the 1.2570 price level coincided with the MACD indicator moving significantly above the zero mark, which limited the pair's upward potential. For this reason

Jakub Novak 08:02 2024-12-30 UTC+2

EUR/USD: Simple Trading Tips for Beginner Traders on December 30. Review of Forex Trades

The test of the 1.0426 level occurred when the MACD indicator had just begun to move downward from the zero line, confirming the validity of the entry point. However

Jakub Novak 08:02 2024-12-30 UTC+2

Intraday strategies for beginners on December 30

Euro and pound buyers continue to stay active, suggesting a slight recovery in risk assets might be seen by the end of the year. However, amid the empty economic calendar

Miroslaw Bawulski 07:22 2024-12-30 UTC+2

USD/JPY: Simple Trading Tips for Beginner Traders on December 27th (U.S. Session)

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

Jakub Novak 14:09 2024-12-27 UTC+2

GBP/USD: Simple Trading Tips for Beginner Traders on December 27th (U.S. Session)

The test of the 1.2514 level coincided with the moment when the MACD indicator moved significantly below the zero mark, limiting the pair's downward potential. A similar scenario occurred

Jakub Novak 14:06 2024-12-27 UTC+2

EUR/USD: Simple Trading Tips for Beginner Traders on December 27th (U.S. Session)

Analysis of Trades and Tips for Trading the Euro Currency Pair The test of the 1.0415 level in the first half of the day coincided with the moment when

Jakub Novak 14:02 2024-12-27 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.