2025/08/07 USD/JPY Trade Strategy

Today's USD/JPY call: Buy.

The market is currently in a range, and it looks trickier than yesterday.
On a day-trading level I have a bullish bias, but I think it’s best to wait patiently until a setup with a good risk-reward ratio appears.

Scenario A
The pink line at 147.6, right at the current price, is acting as resistance.
If price breaks above it, I’ll look at buying the dip, but I see the 1-hour range high at around 147.8.
In that case, you’d be buying near the top of the range, so the risk is high.
It’s better to wait until you have solid reasons to buy, such as a double bottom forming.
Target is 148.1, assuming the range breaks.

Scenario B
Long from around the recent low.
I see the blue line at 147.2 as the range low.
I have a feeling that buying in this scenario is the better option.
Target is 147.6

Scenario C
If price breaks below the blue line, I’ll consider the possibility that the decline continues.
Target is around 145.7, the recent low on the 4-hour chart.

Review

No trade.

There were a few spots you could have taken at a scalping level, but this was a day where there was no need to force anything.