05.06.202414:09 Forex Analysis & Reviews: USD/JPY: Simple trading tips for beginner traders on June 5th (US session)

Analysis of transactions and tips on trading the Japanese yen

The price test of 156.60 came when the MACD indicator went up a lot from zero and reached daily highs, indicating its overbought state. This made it possible to enter the market to sell the dollar, but, as I warned in my morning forecast, it never came to a major downward movement. In the afternoon, many statistics are expected that can both harm the US dollar and support it. In the case of good data on changes in the number of employees from ADP, the ISM business activity index in the service sector, and the composite PMI index, one can bet on further growth of USD/JPY in continuation of the morning trend. Bad numbers will return pressure on the pair, leading to a fairly noticeable correction within the day, which dollar buyers will also rush to take advantage of. As for the intraday strategy, I plan to act based on implementing scenarios No. 1 and No. 2.

Buy signal

Scenario No. 1: I plan to buy USD/JPY today when I reach the entry point in the area of 156.38 (green line on the chart) to grow to 156.93 (thicker green line on the chart). In the area of 156.93, I will exit purchases and open sales in the opposite direction (counting on a movement of 30-35 points in the opposite direction from the level). You can count on the pair's growth today after good statistics on the United States. Important! Before buying, ensure the MACD indicator is above the zero mark and is just starting to grow from it.

Scenario No. 2: I also plan to buy USD/JPY today for two consecutive price tests of 155.94 when the MACD indicator will be in the oversold area. This will limit the pair's downward potential and lead to an upward market reversal. We can expect an increase to the opposite levels of 156.38 and 156.93.

Sell Signal

Scenario No. 1: Today, I plan to sell USD/JPY after breaking below the 155.94 level (red line on the chart), leading to a quick decline in the pair. The key target for sellers will be the 155.44 level. I will exit the sells and immediately open buy positions in the opposite direction (expecting a move of 20-25 points in the opposite direction from the level). Pressure on the pair will return in the case of weak US data. Important! Before selling, ensure the MACD indicator is below the zero mark and just starting to fall from it.

Scenario No. 2: I plan to sell USD/JPY today for two consecutive tests of the 156.38 price when the MACD indicator is overbought. This will limit the pair's upward potential and lead to a downward market reversal. A decline can be expected to the opposite levels of 155.94 and 155.44.

What's on the Chart:

Thin green line – entry price for buying the trading instrument.

Thick green line – estimated price for setting Take Profit or fixing profits yourself, 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 fixing profits yourself, as further decline below this level is unlikely.

MACD indicator. When entering the market, it is important to be guided by overbought and oversold zones.

Important: Beginner traders in the forex market must be cautious when making entry decisions. It is best to stay out of the market before the release of important fundamental reports to avoid sudden price swings. 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.

And remember, successful trading requires a clear trading plan, like the one presented above. Spontaneous trading decisions based on the current market situation are initially a losing strategy for an intraday trader.