2025/05/29 USD/JPY Trade Strategy

The USD/JPY trade strategy for 2025/05/29 is to buy.

Price rallied strongly yesterday, but momentum is now fading a little near a key level on the weekly chart.
This price zone is also a key level on the 4-hour chart, so a temporary drop is possible, but for day trading I’m keeping a bullish bias.

Scenario A
Buying the dip after a break to the upside.
The target is around 147, but be careful: the price zone above and below 146.4 will act as resistance.
It’s also possible that price has already been capped by that resistance and stalled.

Scenario B
Buying after a short-term range forms.
A reversal around the B line at 145.5 is my first choice, but the zone from B down to C is also a buy.
Below B is a sell zone if you’re aiming for scalping, but given the market’s momentum, it’s better to wait for a reversal than to sell into it.
It’s also a price zone where pullbacks tend to form from a Fibonacci perspective.

Scenario C
If price breaks below the C line around 145, I’ll switch to thinking about selling.
The target is around 144.5.

Review

It turned out to be a sell.

Circle ① wasn’t a scenario I could have drawn in the morning, but since price formed a clear double top at a price zone that’s a key level on the 4-hour chart (H4) and then dropped, a sell decision was possible.
Then take profit on reaching the C line. 48 pips
The entry is on the harder side, though,

After that, circle ② is the short I had drawn in Scenario C, on the retracement after price fell further.
This one was easy to read.
Take profit on reaching the pink line at 144.2. 82 pips
That said, holding down to the blue line at 140 below it is also an option.
The blue line is the pullback low on the 4-hour chart (H4).
Since this happens late at night, if you want to avoid a long-drawn-out trade, taking profit at the pink line is fine.
As the saying goes, “leave the head and the tail to others.”