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05.11.202416:31 Forex Analysis & Reviews: USD/JPY: Simple Trading Tips for Beginner Traders on November 5th (U.S. Session)

Analysis of Trades and Trading Tips for the Japanese Yen

The test of the 152.15 level occurred when the MACD indicator had moved significantly below the zero line, limiting the pair's downward potential. For this reason, I didn't sell the dollar. In the second half of the day, U.S. economic activity data for the services sector is expected. An increase in the ISM Services PMI for October would likely strengthen the dollar and push the pair higher, whereas poor data that negatively impacts the final composite PMI could put downward pressure on the U.S. dollar. If the figures align with economists' forecasts, any market impact will likely be minimal, with attention shifting to the U.S. presidential election. For this reason, I anticipate the pair to trade within a sideways range. Regarding the intraday strategy, I'll rely more on the implementation of Scenarios #1 and #2.

Buy Signal

Scenario #1: I plan to buy USD/JPY today at the entry point around 152.31 (green line on the chart) with a target of 152.70 (thicker green line on the chart). Around 152.70, I plan to exit long positions and open short positions in the opposite direction, aiming for a reversal of 30–35 points. The pair's growth today may depend on strong U.S. data. Important: Before buying, ensure that the MACD indicator is above the zero line and just beginning to rise from it.

Scenario #2: I also plan to buy USD/JPY if there is a double test of the 152.05 level, with the MACD indicator in the oversold area. This should limit the pair's downward potential and prompt an upward market reversal. A rise to the levels of 152.31 and 152.70 can be expected.

Sell Signal

Scenario #1: I plan to sell USD/JPY after breaking the 152.05 level (red line on the chart), leading to a quick decline in the pair. The key target for sellers will be 151.65, where I intend to exit short positions and immediately open long positions, aiming for a reversal of 20–25 points from that level. Downward pressure on the pair may return following weak U.S. data. Important: Before selling, ensure that the MACD indicator is below the zero line and just beginning to fall from it.

Scenario #2: I also plan to sell USD/JPY if there is a double test of the 152.31 level, with the MACD indicator in the overbought area. This should limit the pair's upward potential and prompt a downward market reversal. A decline to the levels of 152.05 and 151.65 can be expected.

Chart Guide:

• Thin green line – Entry level for buying the asset.
• Thick green line – Expected level where you can set Take Profit or lock in profit independently, as further growth above this level is unlikely.
• Thin red line – Entry level for selling the asset.
• Thick red line – Expected level where you can set Take Profit or lock in profit independently, as further decline below this level is unlikely.
• MACD Indicator – Use overbought and oversold areas as guidance for entering the market.

Important: Beginner Forex traders should make market entry decisions with great caution. It's best to stay out of the market before major fundamental reports to avoid sharp price fluctuations. If you choose to trade during news releases, always set stop orders to manage potential losses. Without stop orders, you risk quickly losing your entire deposit, especially if trading large volumes without proper money management.

It is essential to have a clear trading plan for successful trading, as outlined above. Spontaneous trading decisions based solely on immediate market situations are generally unprofitable for intraday traders.

*El análisis de mercado publicado aquí tiene la finalidad de incrementar su conocimiento, más no darle instrucciones para realizar una operación.

Jakub Novak,
Analytical expert of InstaSpot
© 2007-2024

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