Overview of trading and tips on USD/JPY

The price test of 152.75 occurred when the MACD indicator was starting to rise from the zero mark, confirming the correct entry point for buying the dollar in anticipation of a correction. As a result, USD/JPY rose by more than 110 pips. Strong U.S. GDP data became the primary catalyst for the pair's growth in the afternoon. The bounce trades at 153.89, which I highlighted in my forecast, yielded around 50 pips of profit. It is evident that profit-taking is taking place in the market, and the dollar could not remain oversold for long, even though many economists and market participants expect a rate hike from the Bank of Japan next week. Today, the situation should calm down somewhat, so significant movements in the first half of the day are unlikely. As for the intraday strategy, I will rely more on implementing scenarios No. 1 and 2.

Buy signals

Scenario No. 1. Today, I plan to buy USD/JPY when the price reaches the entry point around 154.01, plotted by the green line on the chart, with the goal of rising to the level of 154.97 plotted by the thicker green line on the chart. Around 154.97, I will exit long positions and open short ones in the opposite direction, expecting a movement of 30-35 pips in the opposite direction from that level. We can count on the pair to rise today as the bullish correction continues. Before buying, ensure the MACD indicator is above the zero mark and just starting to rise from it.

Scenario No. 2. I also plan to buy USD/JPY today in case of two consecutive tests of 153.44 when the MACD indicator is in the oversold area. This will limit the pair's downward potential and lead to a reverse market upturn. One can expect growth to the opposite levels of 154.01 and 154.97.

Sell signals

Scenario No. 1. I plan to sell USD/JPY today only after testing the level of 153.44 plotted by the red line on the chart, which will lead to a rapid decline in the price. The key target for sellers will be 152.65, where I will exit short positions and immediately open long ones in the opposite direction, expecting a movement of 20-25 pips in the opposite direction from that level. Pressure on USD/JPY may return at any moment, especially if the price fails to consolidate around the intraday high. Before selling, make sure that the MACD indicator is below the zero mark and just starting to decline.

Scenario No. 2. I also plan to sell USD/JPY today in case of two consecutive price tests at 154.01 when the MACD indicator is in the overbought area. This will limit the pair's upward potential and lead to a reverse market downturn. One can expect a decline to the opposite levels, 153.44 and 152.65.

What's on the chart:

The thin green line is the entry price at which you can buy the trading instrument.

The thick green line is the estimated price where you can set Take-Profit (TP) or manually close positions, as further growth above this level is unlikely.

The thin red line is the entry price at which you can sell the trading instrument.

The thick red line is the price where you can set Take-Profit (TP) or manually close positions, as further decline below this level is unlikely.

MACD line: it is important to be guided by overbought and oversold areas when entering the market

Important: Novice traders in the forex market need to be very careful when making decisions to enter the market. It is best to stay out of the market before important fundamental reports are released to avoid getting caught in sharp price fluctuations. If you decide to trade during news releases, always place stop orders to minimize losses. Without setting stop orders, you can quickly lose your entire deposit, especially if you don't use money management and trade in large volumes.

And remember, for successful trading, it is necessary to have a clear trading plan, similar to the one I presented above. Spontaneously making trading decisions based on the current market situation is inherently a losing strategy for an intraday trader.