empty
28.01.2025 02:13 PM
USD/JPY: Simple Trading Tips for Beginner Traders on January 28th (U.S. Session)

Analysis of Trades and Tips for Trading the Japanese Yen

The 155.42 price test occurred at a time when the MACD indicator had moved significantly below the zero mark, which, in my opinion, limited the pair's downward potential. For this reason, I did not sell the dollar.

The yen has regained some ground against the dollar, but the market still favors USD/JPY buyers. In a recent interview, former Bank of Japan board member Sakurai stated that he expects a rate hike in June or July as Japan's economy recovers. Essentially, he reaffirmed the central bank's recently adopted course toward stabilizing monetary policy. Sakurai highlighted that Japan's improving economic conditions are tied to rising exports and increased consumer demand. These positive changes provide a foundation for revising the current interest rate policy, which has remained historically accommodative for several years. Sakurai emphasized that a rate hike would be an important step toward normalization, boosting investor confidence in the Japanese economy. However, he urged caution, pointing out that growth dynamics must remain sustainable. He also mentioned potential short-term impacts from global market slowdowns, which could pressure Japan, especially given the uncertainty surrounding Donald Trump's future policies.

Today, the US will release consumer confidence data, strong results of which could drive USD/JPY higher, as well as reports on durable goods orders and the Richmond Fed manufacturing index.

As for the intraday strategy, I will primarily rely on the implementation of Scenario #1 and Scenario #2 to continue the downward trend.

This image is no longer relevant

Buy Signal

Scenario #1: Today, I plan to buy USD/JPY if the price reaches the 155.55 level (green line on the chart), aiming for a rise toward 156.35 (thicker green line on the chart). At 156.35, I plan to exit purchases and open short positions in the opposite direction (expecting a movement of 30–35 points from the entry level). The pair's growth potential depends on strong US statistics.Important: Before buying, ensure the MACD indicator is above the zero mark and just beginning to rise.

Scenario #2: Another opportunity to buy USD/JPY will arise after two consecutive tests of the 155.11 level, provided the MACD indicator is in the oversold area. This will limit the pair's downward potential and trigger a market reversal upward. The expected growth will target 155.55 and 156.35.

Sell Signal

Scenario #1: Today, I plan to sell USD/JPY after a break below the 155.11 level (red line on the chart), which could lead to a rapid decline in the pair. The key target for sellers will be 154.50, where I plan to exit shorts and immediately open long positions in the opposite direction (expecting a movement of 20–25 points from the entry level). Further pressure on the pair is possible, but it would require a fundamental catalyst.Important: Before selling, ensure the MACD indicator is below the zero mark and just beginning to decline.

Scenario #2: Another selling opportunity will arise after two consecutive tests of the 155.55 level, provided the MACD indicator is in the overbought area. This will limit the pair's upward potential and trigger a market reversal downward. The expected decline will target 155.11 and 154.50.

This image is no longer relevant

Chart Key:

  • Thin Green Line: The price level for entering long positions.
  • Thick Green Line: The suggested price for placing Take Profit or manually closing a trade, as further growth beyond this level is unlikely.
  • Thin Red Line: The price level for entering short positions.
  • Thick Red Line: The suggested price for placing Take Profit or manually closing a trade, as further decline beyond this level is unlikely.
  • MACD Indicator: Use it to determine oversold and overbought conditions before entering the market.

Important: Beginner Forex traders must be cautious when making market entry decisions. Before the release of critical fundamental reports, it is best to stay out of the market to avoid sharp price fluctuations. If you decide to trade during news releases, always set Stop Loss orders to minimize losses. Without Stop Losses, you can quickly lose your entire deposit, especially when trading large volumes without proper money management.

And remember: for successful trading, it is essential to have a clear trading plan, like the one provided above. Making spontaneous trading decisions based on the current market situation is a losing strategy for intraday traders.

Jakub Novak,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Chancy Deposit
    Deposit your account with $3,000 and get $10000 more!
    In January we raffle $10000 within the Chancy Deposit campaign!
    Get a chance to win by depositing $3,000 to a trading account. Having fulfilled this condition, you become a campaign participant.
    JOIN CONTEST

Recommended Stories

USD/JPY: Simple Trading Tips for Beginner Traders – January 30th (U.S. Session)

There were no tests of the designated levels in the first half of the day. The U.S. Q4 GDP report and weekly Initial Jobless Claims will only indirectly impact

Jakub Novak 14:52 2025-01-30 UTC+2

GBP/USD: Simple Trading Tips for Beginner Traders – January 30th (U.S. Session)

The test of 1.2439 occurred when the MACD indicator had already moved significantly below the zero mark, which limited the pair's downward potential. For this reason, I did not sell

Jakub Novak 14:46 2025-01-30 UTC+2

EUR/USD: Simple Trading Tips for Beginner Traders – January 30th (U.S. Session)

The test of 1.0414 occurred just as the MACD indicator began moving downward from the zero mark, confirming a valid selling entry point for the euro in line with

Jakub Novak 14:40 2025-01-30 UTC+2

USD/JPY: Simple Trading Tips for Beginner Traders on January 30. Analysis of Yesterday's Forex Trades

The test of the 155.17 level occurred when the MACD indicator had already moved significantly downward from the zero mark, which limited the potential for further declines in the pair

Jakub Novak 07:32 2025-01-30 UTC+2

GBP/USD: Simple Trading Tips for Beginner Traders on January 30. Analysis of Yesterday's Forex Trades

The testing of the 1.2405 level coincided with the moment when the MACD indicator began to move downward from the zero mark, indicating a favorable entry point for selling

Jakub Novak 07:32 2025-01-30 UTC+2

EUR/USD: Simple Trading Tips for Beginner Traders on January 30. Analysis of Yesterday's Forex Trades

The first test of the 1.0388 level occurred when the MACD indicator had already moved significantly downward from the zero mark, limiting the pair's downside potential. For this reason

Jakub Novak 07:27 2025-01-30 UTC+2

USD/JPY: Simple Trading Tips for Beginner Traders on January 29th (U.S. Session)

The test of the 155.27 level occurred when the MACD indicator was just starting to move upward from the zero mark, confirming a valid buy signal for the U.S. dollar

Jakub Novak 19:06 2025-01-29 UTC+2

GBP/USD: Simple Trading Tips for Beginner Traders on January 29th (U.S. Session)

The test of the 1.2441 level occurred when the MACD indicator had already moved significantly downward from the zero mark, which limited the pair's downward potential. For this reason

Jakub Novak 19:02 2025-01-29 UTC+2

EUR/USD: Simple Trading Tips for Beginner Traders on January 29th (U.S. Session)

The test of the 1.0427 level coincided with the MACD indicator beginning to move downward from the zero mark, confirming a valid sell signal in line with the prevailing downtrend

Jakub Novak 18:56 2025-01-29 UTC+2

XAG/USD. Analysis and Forecast

For the second consecutive day, silver is attempting to attract buyers. Technical indicators on the daily chart have started to gain positive momentum, supporting the outlook for further upside. However

Irina Yanina 12:36 2025-01-29 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.