2025/05/21 USD/JPY Trade Strategy
The USD/JPY trade strategy for 2025/05/21 is to sell.
The daily chart looks like a correction in the middle of an upward wave, but the pullback has gotten quite deep and it’s starting to feel like a range.
The 4-hour and 1-hour charts are a sell.
For day trading, the strategy is to look for selling the rally.
Scenario A
If price breaks above this level, I see it as a buy in the short term.
I’m picturing a rise after a double bottom forms on the 1-hour chart.
Target is around 145.
Scenario B
Sell from the range high.
Target is 143.5
Scenario C
Selling the rally after a break below the range.
I’m picturing either the hand-drawn red line acting as support/resistance (S/R), or a retracement up to around the pink line above it.
Target is also 143.5
Review
This turned out to be a sell under Scenario C.
At circle ①, the retracement is a bit shallow, so it may look hard to enter on the 15-minute chart, but you can get in where price drops from the rally high on the 5-minute chart (M5) against the blue support/resistance (S/R).
Take profit quickly once the target is reached. 45 pips
After that, you can enter at circle ②, where price came back up again.
With price turning up (making higher lows), shorting from the very top is difficult, but you can short once it drops from there and gets capped below the horizontal level.
This entry is based on the fact that the level forms clean S/R on the 1-hour chart.
It’s a tough call whether to hold in hopes of breaking the low, or to take profit quickly when a long lower wick forms at the 143.5 line.
If you take profit at the line, you can get around 48 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.
