empty
18.12.2024 09:03 AM
USD/JPY: Simple Trading Tips for Beginner Traders on December 18. Forex Analysis of Yesterday's Trades

Analysis of Trades and Trading Tips for the Japanese Yen

The 153.94 price test occurred when the MACD indicator had moved significantly above the zero mark, limiting the pair's upward potential. For this reason, I chose not to buy the dollar. Shortly thereafter, another test of 153.94 took place while the MACD indicator was in the overbought area, enabling Scenario #2 for selling. As a result, the pair dropped to the target level of 151.31, where bounce-back buying yielded an additional 30 pips of profit.

Today's strong trade balance figures have helped the Japanese yen to strengthen against the dollar. Most likely, pressure on the dollar will persist until the Federal Reserve announces its decision on interest rates. The yen's appreciation, supported by positive trade balance data, reflects investor confidence in the Japanese economy. This metric, which measures the difference between exports and imports, has become a significant indicator of demand for the yen. Moreover, steady growth in Japanese exports bolsters interest in the yen as a safe-haven asset, especially given the uncertainty surrounding the Bank of Japan's future policy.

While the yen remains in demand, the dollar faces pressure ahead of the Federal Reserve's interest rate decision. Traders will closely monitor the central bank's statements, as any hints about future changes in monetary policy could lead to significant currency fluctuations.

For the intraday strategy, I plan to rely primarily on implementing Scenarios #1 and #2.

This image is no longer relevant

Buy Signal

Scenario #1: Today, I plan to buy USD/JPY at the entry point near 153.50 (green line on the chart) with a target of rising to the 153.90 level (thicker green line). Around 153.90, I will exit purchases and open sales in the opposite direction (expecting a move of 30–35 pips from the level). Considering the solid correction, demand for the dollar may return quickly. Important: Before buying, ensure the MACD indicator is above the zero line and beginning to rise.

Scenario #2: I also plan to buy USD/JPY today in case of two consecutive tests of the 153.19 price when the MACD indicator is in the oversold zone. This will limit the pair's downward potential and lead to a market reversal upwards. Growth to the opposing levels of 153.50 and 153.90 can be expected.

Sell Signal

Scenario #1: I plan to sell USD/JPY today only after the 153.19 level (red line on the chart) is breached, which will lead to a quick decline in the pair. The key target for sellers will be 152.84, where I plan to exit sales and immediately open purchases in the opposite direction (expecting a move of 20–25 pips in the opposite direction). Pressure on the pair may return today only after failing to hold at a new daily high. Important: Before selling, ensure the MACD indicator is below the zero line 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 153.50 price when the MACD indicator is in the overbought zone. This will limit the pair's upward potential and lead to a downward market reversal. A decline to the opposing levels of 153.19 and 152.84 can be expected.

This image is no longer relevant

Chart Notes

  • Thin green line: Entry price for buying the trading instrument.
  • Thick green line: A suggested target for Take Profit or manually locking in profits, as further growth above this level is unlikely.
  • Thin red line: Entry price for selling the trading instrument.
  • Thick red line: A suggested target for Take Profit or manually locking in profits, as further decline below this level is unlikely.
  • MACD Indicator: Critical for identifying overbought and oversold zones to guide market entry decisions.

Important Note for Beginner Traders

  • Always approach market entry decisions cautiously.
  • Avoid trading during major news releases to sidestep volatile price swings.
  • If trading during news releases, always set stop-loss orders to minimize losses.
  • Trading without stop-loss orders or money management practices can quickly deplete your deposit, especially when using large volumes.
  • A clear trading plan, like the one outlined above, is essential for successful trading. Spontaneous trading decisions based on current market conditions are inherently disadvantageous for intraday traders.
Jakub Novak,
Analytical expert of InstaForex
© 2007-2024
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
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

Recommended Stories

GBP/USD: Simple Trading Tips for Beginner Traders on December 20. Forex Analysis of Yesterday's Trades

The 1.2635 price test occurred when the MACD indicator had just begun moving downward from the zero level. This confirmed a correct entry point for selling the pound, which resulted

Jakub Novak 09:01 2024-12-20 UTC+2

EUR/USD: Simple Trading Tips for Beginner Traders on December 20. Forex Analysis of Yesterday's Trades

The test of the 1.0402 price level coincided with when the MACD indicator was just beginning to move down from the zero mark. This confirmed the correct entry point

Jakub Novak 09:01 2024-12-20 UTC+2

USD/JPY: Simple Trading Tips for Beginner Traders on December 19th (U.S. Session)

The first test of the 155.47 level occurred when the MACD indicator had just started moving upward from the zero line, confirming the validity of entering a long position

Jakub Novak 13:16 2024-12-19 UTC+2

GBP/USD: Simple Trading Tips for Beginner Traders on December 19th (U.S. Session)

The first test of the 1.2603 level occurred when the MACD indicator had already moved significantly above the zero line, which, in my view, limited the pair's upward potential, especially

Jakub Novak 13:09 2024-12-19 UTC+2

EUR/USD: Simple Trading Tips for Beginner Traders on December 19th (U.S. Session)

The first test of the 1.0400 level occurred when the MACD indicator had already moved significantly above the zero mark, which, in my opinion, limited the pair's upward potential

Jakub Novak 12:55 2024-12-19 UTC+2

USD/JPY: Simple Trading Tips for Beginner Traders on December 19. Forex Analysis of Yesterday's Trades

The test of the 153.79 price level occurred when the MACD indicator was beginning to move upward from the zero mark, confirming the correct entry point for buying the dollar

Jakub Novak 07:46 2024-12-19 UTC+2

GBP/USD: Simple Trading Tips for Beginner Traders on December 19. Forex Analysis of Yesterday's Trades

The test of the 1.2701 level occurred when the MACD indicator was beginning to move down from the zero mark, confirming the validity of a sell signal for the pound

Jakub Novak 07:46 2024-12-19 UTC+2

EUR/USD: Simple Trading Tips for Beginner Traders on December 19. Forex Analysis of Yesterday's Trades

The test of the 1.0488 level coincided with the moment when the MACD indicator was beginning to move downward from the zero mark. This confirmed the validity of the entry

Jakub Novak 07:46 2024-12-19 UTC+2

USD/JPY: Simple Trading Tips for Beginner Traders on December 18th (U.S. Session)

The test of the 153.50 price level occurred when the MACD indicator was just beginning to move upward from the zero mark. This confirmed the validity of the entry point

Jakub Novak 13:52 2024-12-18 UTC+2

GBP/USD: Simple Trading Tips for Beginner Traders on December 18th (US Session)

The test of the 1.2694 price level occurred when the MACD indicator was just starting to move down from the zero mark. This confirmed the validity of the entry point

Jakub Novak 13:50 2024-12-18 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.