2025/05/28 USD/JPY Trade Strategy

The USD/JPY trade strategy for 2025/05/28 is to buy.

Price rose sharply yesterday, but it doesn’t look like it will keep climbing with the same momentum from here.
That’s because this area is a resistance zone on the daily and 4-hour charts.
For day trading I’m still looking to buy, but price could also go down to form a big pullback first, and in that case I’d like to take it with a sell.

Scenario A
Buying the dip after a break above the current range.
Target is around 145

Scenario B
Until around 10 am JST (01:00 UTC) I saw the current range as strongly favoring a sell, but because of the sudden spike I’m looking to buy again.
That said, I think it could also drop right back and end up as a long upper wick.
Even in that case, technically it’s still a buy until price breaks below the range, so I’ll aim to buy.

Scenario C
Selling the rally after a break below the range.
Target is 143.4
If it falls further, down to around 143.

Review

The first half of the day had unclear price action, so I waited and saw.
Once the New York session began, price broke above and came back, and I went long at the red circle.
This was a trade following Scenario A, and I took profit when it reached the 145 target. 40 pips

I thought it would range a bit longer, but it rose without much resistance.
Preconceptions are dangerous in the market.