Analysis of Trades and Trading Tips for the Japanese Yen

The test of the price at 155.95 coincided with the moment when the MACD indicator was just starting to move upwards from the zero mark, confirming the correct entry point for buying dollars. As a result, the pair rose by 20 pips.

The Japanese yen declined against the U.S. dollar on Wednesday, following personnel changes at the Bank of Japan. The government of Prime Minister Sanae Takaichi announced the appointment of two new members to the monetary policy board, who, according to analysts, share the view that maintaining accommodative monetary policy is necessary. This decision likely reinforced market expectations regarding further stimulus for the Japanese economy, which traditionally puts pressure on the yen. The appointment of proponents of soft monetary policy indicates the government's commitment to the current dovish stance, which does not align with the central bank's views.

It is clear that traders will now closely monitor the Bank of Japan's further actions and the government's response to economic challenges.

Regarding the intraday strategy, I will focus more on implementing scenarios #1 and #2.

Buy Scenarios:

Scenario #1: I plan to buy USD/JPY today when it reaches an entry point around 155.76 (green line on the chart), targeting a move to 156.21 (thicker green line on the chart). At the 156.21 level, I intend to exit the long positions and immediately sell back on the pullback (aiming for a 30-35-pip move in the opposite direction from the level). It is best to return to buying this pair during corrections and significant pullbacks of USD/JPY. Important! Before buying, ensure 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 the price tests 155.46 twice while the MACD is in the oversold area. This will limit the pair's downward potential and lead to a market reversal upwards. One can expect growth to opposing levels of 155.76 and 156.21.

Sell Scenarios:

Scenario #1: I plan to sell USD/JPY today only after updating the 155.46 level (red line on the chart), which will trigger a rapid decline in the pair. The key target for sellers will be the level of 155.05, where I intend to exit the shorts and immediately buy back in the opposite direction (aiming for a movement of 20-25 pips in the opposite direction from the level). It is better to sell as high as possible. Important! Before selling, ensure the MACD indicator is below the zero mark and just beginning to decline from it.

Scenario #2: I also plan to sell USD/JPY today in case of two consecutive tests of the price at 155.76 when the MACD indicator is in the overbought area. This will limit the pair's upward potential and lead to a market reversal downwards. One can expect a decline to opposing levels of 155.46 and 155.05.

What the Chart Shows:

• Thin Green Line: Entry price for buying the trading instrument.
• Thick Green Line: Estimated price for setting Take Profit or locking in profits, as further growth above this level is unlikely.
• Thin Red Line: Entry price for selling the trading instrument.
• Thick Red Line: Estimated price for setting Take Profit or locking in profits, as further decline below this level is unlikely.
• MACD Indicator: When entering the market, focus on the overbought and oversold zones.

Important:

Beginner traders in the Forex market must make entry decisions very cautiously. It is best to stay out of the market before significant fundamental reports are released to avoid sudden price fluctuations. If you decide to trade during news releases, always set stop orders to minimize losses. Without stop orders, you can quickly lose your entire deposit, especially if you do not use money management and trade large volumes.

Remember, to trade successfully, you must have a clear trading plan, as presented above. Spontaneous trading decisions based on the current market situation are a losing strategy for intraday traders.