2026/10/23 USD/JPY Trade Strategy
Today's USD/JPY call: Sell.
Following yesterday’s decline, I’m keeping a bearish bias.
That said, upward momentum is strong in the near term, so it feels like price might break higher for a while first.
I’ll wait and see a bit longer, and if signs of a drop appear, I want to sell.
If price rises from here, it becomes a range on the 1-hour level, so the plan is to go long up to the range high and then look to sell again.
Review
It turned out to be Scenario B.
Early on, price did break above Line A as expected, so the long comes from the pullback that followed at circle ①.
That said, there’s no need to force this one. Since the strategy is to sell in line with the bigger trend, waiting for the upside to break down again is also a valid choice.
If you did enter, price comes down from the next line up, so you either get out with about 10 pips or take a breakeven exit.
After that, price drops, so we wait for a retracement in line with Scenario B.
It starts turning down (making lower highs) around the blue line just above Line A, so the short is at circle ②.
The decline stalls at the next blue line down, so that’s where we take profit. 40 pips
This article reflects the author's personal view of the market. It does not recommend any specific trade; all investment decisions are your own responsibility.
