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FX.co ★ USD/JPY: Simple trading tips for novice traders on May 2nd (US session)

USD/JPY: Simple trading tips for novice traders on May 2nd (US session)

Analysis of transactions and trading advice for the Japanese yen

The test of the price at 155.05 occurred at a time when the MACD indicator had descended significantly from the zero mark, limiting the further downward potential of the pair. For this reason, I did not sell. Unfortunately, I did not wait for a second test to buy the dollar from this level. Ahead of us are US statistics, capable of shaking the market, which has slightly stalled after yesterday's crazy volatility. Figures on the number of initial claims for unemployment benefits and the balance of trade could cause the pair to decline significantly, but only if the data disappoints greatly. Good statistics are a reason to buy the dollar and sell the yen again according to the trend. As for the intraday strategy, I will rely more on scenarios #1 and #2.

USD/JPY: Simple trading tips for novice traders on May 2nd (US session)

Buy Signal

Scenario #1: I plan to buy USD/JPY today when the entry point reaches around 155.39 (green line on the chart) with the aim of rising to the level of 156.04 (thicker green line on the chart). At 156.04, I will exit the purchases and open sales in the opposite direction (anticipating a movement of 30-35 points in the opposite direction from the level). Expect the pair to rise today in continuation of the bullish market. Important! Before buying, make sure that the MACD indicator is above the zero mark and is just beginning its rise from it.

Scenario #2: I also plan to buy USD/JPY today in the event of two consecutive tests of the price at 154.99 at a time when the MACD indicator is in oversold territory. This will limit the downward potential of the pair and lead to a reversal of the market upwards. Expect growth to opposite levels of 155.39 and 156.04.

Sell Signal

Scenario #1: I plan to sell USD/JPY today after the level of 154.99 is updated (red line on the chart), which will lead to a rapid decline in the pair. The key target for sellers will be the level of 154.40, where I will exit the sales and immediately open purchases in the opposite direction (anticipating a movement of 20-25 points in the opposite direction from the level). Pressure on the pair will return in the event of central bank intervention. Important! Before selling, make sure that the MACD indicator is below the zero mark and is just beginning to decline from it.

Scenario #2: I also plan to sell USD/JPY today in the event of two consecutive tests of the price at 155.39 at a time when the MACD indicator is in overbought territory. This will limit the upward potential of the pair and lead to a reversal of the market downwards. Expect a decline to opposite levels of 154.99 and 154.40.

USD/JPY: Simple trading tips for novice traders on May 2nd (US session)

On the Chart:

Thin green line - entry price, at which the trading instrument can be bought.

Thick green line - expected price, where you can set Take Profit or fix profits on your own, as further growth above this level is unlikely.

Thin red line - entry price at which the trading instrument can be sold.

Thick red line - expected price, where you can set Take Profit or fix profits on your own, as further decline below this level is unlikely.

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

Important. Novice traders in the forex market need to be very careful when making decisions to enter the market. Before important fundamental reports are released, it is best to stay out of the market to avoid being caught in sharp price fluctuations. If you decide to trade during news releases, always place stop orders to minimize losses. You need to set stop orders to avoid losing your entire deposit, especially if you do not use money management and trade in large volumes.

And remember, for successful trading, it is necessary to have a clear trading plan, like the one presented above. Spontaneous decision-making based on the current market situation is inherently a losing strategy for an intraday trader.

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade
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