empty
16.12.2024 04:47 PM
USD/JPY: Simple Trading Tips for Beginner Traders on December 16th (U.S. Session)

Review of Trades and Trading Tips for USD/JPY

The first test of the 153.59 price level occurred when the MACD indicator had moved significantly below the zero line, limiting the pair's bearish potential. For this reason, I refrained from selling the dollar. Shortly after, another test of 153.59 occurred, with the MACD indicator in the oversold area. This allowed Scenario #2 for buying to materialize, resulting in the pair rising by nearly 30 points.

Key US economic data such as the Manufacturing PMI, Services PMI, and Composite PMI will influence the USD/JPY pair's direction. The Manufacturing PMI measures activity in manufacturing companies, while the Services PMI evaluates trends in the services sector. These indicators help traders assess the overall state of the economy and anticipate its trajectory. A sharp decline, especially in manufacturing, could lead to a significant drop in the pair. Conversely, decent data would likely extend USD/JPY's uptrend, so exercise caution with selling.

For intraday strategies, I will focus on implementing Scenario #1 and Scenario #2.

This image is no longer relevant

Buy Signal

Scenario #1: Today, I plan to buy USD/JPY at the entry point near 153.91 (green line on the chart), targeting a rise to the 154.40 level (thicker green line on the chart). At 154.40, I plan to exit purchases and open sales in the opposite direction, expecting a 30–35 point pullback. The pair's uptrend could continue.Important! Before buying, ensure the MACD indicator is above the zero line and just starting its upward movement.

Scenario #2: I also plan to buy USD/JPY if there are two consecutive tests of the 153.63 price level, when the MACD indicator is in the oversold area. This will limit the pair's bearish potential and lead to a market reversal upward. Growth can be expected toward the opposite levels of 153.91 and 154.40.

Sell Signal

Scenario #1: I plan to sell USD/JPY after a breakdown of the 153.63 level (red line on the chart), which could lead to a rapid decline in the pair. The key target for sellers will be 153.11, where I plan to exit sales and immediately open purchases in the opposite direction, expecting a 20–25 point rebound. Renewed pressure on the dollar will likely only follow weak US data.Important! Before selling, ensure the MACD indicator is below the zero line and just starting its downward movement.

Scenario #2: I also plan to sell USD/JPY if there are two consecutive tests of the 153.91 price level, when the MACD indicator is in the overbought area. This will limit the pair's upward potential and lead to a market reversal downward. A decline can be expected toward the opposite levels of 153.63 and 153.11.

This image is no longer relevant

Chart Notes

  • Thin green line: Entry price for buying the trading instrument.
  • Thick green line: Estimated price for setting Take Profit or manually fixing profit, 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 manually fixing profit, as further decline below this level is unlikely.
  • MACD Indicator: When entering the market, it's important to consider overbought and oversold areas.

Important Notes for Beginner Forex Traders

  • Carefully decide when to enter the market. Before the release of major fundamental reports, it's best to stay out of the market to avoid sharp price swings.
  • If you choose to trade during news releases, always set stop-loss orders to minimize losses. Without stop orders, you can quickly lose your entire deposit, especially when trading large volumes without proper money management.
  • Remember, successful trading requires a clear trading plan, like the one presented above. Making spontaneous trading decisions based on the current market situation is inherently a losing strategy 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
  • Chancy Deposit
    Deposit your account with $3,000 and get $6000 more!
    In December we raffle $6000 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

Recommended Stories

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

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

Jakub Novak 14:13 2024-12-20 UTC+2

GBP/USD: Simple Trading Tips for Beginner Traders on December 20th (U.S. Session)

No tests of the specified levels occurred during the first half of the day due to significantly reduced volatility in the pound following yesterday's sell-off. The release of data

Jakub Novak 14:11 2024-12-20 UTC+2

EUR/USD: Simple Trading Tips for Beginner Traders on December 20th (U.S. Session)

The test of the 1.0385 level occurred when the MACD indicator was already significantly above the zero mark, which, in my opinion, limited the pair's upward potential. For this reason

Jakub Novak 14:10 2024-12-20 UTC+2

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

A test of the 157.12 level coincided with the MACD indicator beginning to move upward from the zero mark, confirming a proper entry point for buying the dollar

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

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
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.