See also
The test of the 143.21 price level coincided with the MACD indicator just beginning to move downward from the zero line, confirming a correct entry point for selling the dollar and resulting in a decline toward the target level of 142.38.
Against a lack of important U.S. data yesterday, the yen resumed its growth against the U.S. dollar. The yen's strengthening is also tied to expectations of a policy shift by the Bank of Japan. The market believes the central bank may continue raising interest rates — especially amid trade-related shocks, which could further fuel inflationary pressures in the country. Investors also expect the U.S. Federal Reserve to return to cutting interest rates, which further reduces the dollar's attractiveness. The divergence in central bank policies remains a key factor in the yen's rise against the dollar.
For intraday strategy, I will focus primarily on implementing Scenarios #1 and #2.
Scenario #1: Today, I plan to buy USD/JPY upon reaching the entry point around 142.69 (green line on the chart) with a target of rising toward 143.37 (thicker green line on the chart). Around 143.37, I plan to exit long positions and open short positions in the opposite direction (targeting a 30–35 pip move from the level). Buying the pair is preferable on corrections and serious pullbacks in USD/JPY.
Important! Before buying, make sure the MACD indicator is above the zero line and just starting to rise.
Scenario #2: I also plan to buy USD/JPY today if there are two consecutive tests of the 142.27 price level while the MACD indicator is in the oversold zone. This would limit the pair's downside potential and lead to a market reversal upward. A rise toward the opposite levels of 142.69 and 143.37 can be expected.
Scenario #1: Today, I plan to sell USD/JPY only after a breakout below the 142.27 level (red line on the chart), which should lead to a quick decline in the pair. The key target for sellers will be 141.61, where I plan to exit short positions and immediately open long positions (expecting a 20–25 pip move in the opposite direction). Pressure on the pair may return at any moment.
Important! Before selling, ensure the MACD indicator is below the zero line and beginning to decline.
Scenario #2: I also plan to sell USD/JPY today if there are two consecutive tests of the 142.69 price level while the MACD indicator is in the overbought zone. This would limit the pair's upside potential and lead to a downward market reversal. A decline toward the opposite levels of 142.27 and 141.61 can be expected.
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*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
Trade Analysis and Tips for Trading the Japanese Yen The test of the 142.86 price level occurred when the MACD indicator had just started moving down from the zero line
Trade Analysis and Tips for Trading the British Pound The test of the 1.3350 price level in the second half of the day coincided with the MACD indicator having already
The test of the 142.54 level in the second half of the day coincided with the MACD indicator just beginning to move downward from the zero line, confirming a correct
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