Analysis of Trades and Tips for Trading the Japanese YenThe test of 149.46 in the first half of the day coincided with the MACD indicator beginning to decline from zero, confirming a valid entry point to sell the dollar. As a result, the pair dropped by 40 points. Tokyo's inflation data today continues to support demand for the yen while pressuring the US dollar, as the divergence between central bank policies becomes less pronounced. Rising prices for goods and services are stimulating consumer demand and, in turn, strengthening the yen. This development may prompt the Bank of Japan to consider shifting from its dovish monetary policy toward interest rate hikes.

For the second half of the day, the absence of significant US economic data makes substantial growth in USD/JPY unlikely. At most, a slight correction may occur, which large sellers are likely to capitalize on. For intraday strategies, I will focus primarily on implementing Scenario 1 and Scenario 2.

Buy Signal

Scenario 1:Today, I plan to buy USD/JPY at 150.17 (green line on the chart), targeting 150.69 (thicker green line on the chart). At 150.69, I will exit long positions and open short positions in the opposite direction, aiming for a 30–35 point pullback. The pair's rise is likely part of a correction.Important: Before buying, ensure the MACD indicator is above zero and beginning to rise.

Scenario 2:I also plan to buy USD/JPY if the price tests the 149.72 level twice while the MACD indicator is in oversold territory. This setup may limit the pair's downward potential and lead to a reversal upward. Potential targets for growth are 150.17 and 150.69.

Sell Signal

Scenario 1:I plan to sell USD/JPY after it breaks below 149.72 (red line on the chart), potentially triggering a quick decline. The key target for sellers will be 149.19, where I will exit short positions and consider buying immediately for a 20–25 point pullback. A larger correction may increase the likelihood of renewed selling pressure on the pair.Important: Before selling, ensure the MACD indicator is below zero and beginning to decline.

Scenario 2:I also plan to sell USD/JPY today if the price tests the 150.17 level twice while the MACD indicator is in overbought territory. This setup may limit the pair's upward potential and lead to a reversal downward. Potential targets for the decline are 149.72 and 149.19.

Chart Details

• Thin Green Line: Entry price for buying the instrument.
• Thick Green Line: Target price to set Take Profit or manually close trades, as further growth above this level is unlikely.
• Thin Red Line: Entry price for selling the instrument.
• Thick Red Line: Target price to set Take Profit or manually close trades, as further declines below this level are unlikely.
• MACD Indicator: Monitor overbought and oversold zones as signals for potential market entry points.

Important Notes for Beginner Forex TradersExercise caution when making market entry decisions. Avoid trading during the release of major fundamental reports to minimize exposure to sharp price movements.Always use stop-loss orders to limit potential losses. Without them, you risk losing your deposit quickly, especially when trading large volumes without proper money management.Stick to a well-defined trading plan, such as the one outlined above, to maintain consistency and reduce risk. Unplanned trading decisions based on market conditions often result in losses for intraday traders.