2025/05/27 USD/JPY Trade Strategy

The USD/JPY trade strategy for 2025/05/27 is to sell.

The situation has barely changed since yesterday.
Now that price has made a retracement, a break below is more likely than it was yesterday.
Yesterday I waited all day for a retracement to the range high and an S/R flip there, but the best opportunity came this morning around 8:30 am JST (23:30 UTC the previous day).
For now, I’m back to waiting to sell the rally.

Scenario A
Line B at 142.75 is being respected as support/resistance, and a break above it is a buy.
However, with the range high just above, I’ll treat this as a wide resistance zone and look to buy the pullback after price clears around 143.
Target is around 143.5.

Scenario B
If price fails to clear line B and the resistance zone above it and comes back down, I’ll look to sell again.
The target is the range low around 142.2, but keeping a break below in mind, I’d like to hold the position if I can.
In that case, the target is around 141.5.

Scenario C
Short on a break below the range.
Target is around 141.5.

Review

This ended up as a buy under Scenario A.
It was buying the dip after the break above 143.
Since it’s 1-hour support/resistance (S/R), it’s a level you can actively target.

After entry, you might hesitate over whether to take profit where price met a bit of resistance at the recent high.
However, given the size and momentum of the recent rally, you could picture it extending to around 144, so holding was the better call.
In reality it pushed a little further past 144, but taking profit quickly once 144 was reached is fine. 85 pips