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28.10.202409:01 Forex Analysis & Reviews: USD/JPY: Simple Trading Tips for Beginner Traders on October 28. Review of Forex Trades

Analysis of Trades and Trading Tips for the Japanese Yen

The test of the 152.12 price level occurred when the MACD indicator was beginning to move up from the zero line, confirming an ideal entry point for buying the dollar as part of the ongoing uptrend. As a result, the pair rose to the target level of 152.56. Today, there is no significant economic data from Japan or the U.S., so dollar buyers will likely retain market control. However, given the pair's substantial increase during the Asian session, I will prefer to buy only on a correction, as it's uncertain how long bullish sentiment will persist—especially given the divergent monetary policies of the central banks. I'll focus primarily on scenarios #1 and #2 for today's intraday strategy.

Exchange Rates 28.10.2024 analysis

Buy Signal

Scenario #1: I plan to buy USD/JPY today upon reaching the entry point around 153.52 (green line on the chart), aiming for a rise to 154.10 (thicker green line on the chart). Around 154.10, I plan to exit the buy position and open a sell position in the opposite direction, targeting a 30-35 pip move downward. Further growth is possible, but it's best to buy on pullbacks. Important! Before buying, ensure that the MACD indicator is above the zero line and is just beginning to rise from it.

Scenario #2: I also plan to buy USD/JPY if there are two consecutive tests of the 153.15 level when the MACD indicator is in the oversold zone. This will limit the pair's downward potential and lead to an upward reversal. A rise toward the opposing levels of 153.52 and 154.10 can be expected.

Sell Signal

Scenario #1: I plan to sell USD/JPY only after it breaks below the 153.15 level (red line on the chart), leading to a rapid decline in the pair. The key target for sellers will be 152.69, where I plan to exit the sell position and immediately open a buy position in the opposite direction, targeting a 20-25 pip upward move. Selling pressure will return if there's weak activity near the daily high. Important! Before selling, ensure the MACD indicator is below the zero line and is just beginning to fall from it.

Scenario #2: I also plan to sell USD/JPY if there are two consecutive tests of the 153.52 level while the MACD is in the overbought zone. This will limit the pair's upward potential and lead to a downward reversal, with expected declines toward 153.15 and 152.69.

Exchange Rates 28.10.2024 analysis

Chart Indicators:

Thin Green Line – Entry price to buy the instrument.

Thick Green Line – Suggested price level for setting Take Profit or manually taking profits, as further growth beyond this level is unlikely.

Thin Red Line – Entry price to sell the instrument.

Thick Red Line – Suggested price level for setting Take Profit or manually taking profits, as further decline beyond this level is unlikely.

MACD Indicator – When entering the market, consider overbought and oversold zones.

Important: Novice traders should exercise caution when entering the market. Before the release of significant fundamental reports, it is best to stay out of the market to avoid sudden price swings. If you choose to trade during news releases, always set stop orders to minimize losses. You may quickly lose your entire deposit without stop orders, especially if trading large volumes without proper money management.

Remember, successful trading requires a clear plan, like the above example. Spontaneous trading decisions based on current market conditions are inherently a losing strategy for an intraday trader.

*A análise de mercado aqui postada destina-se a aumentar o seu conhecimento, mas não dar instruções para fazer uma negociação.

Jakub Novak,
Analytical expert of InstaSpot
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