2025/10/31 USD/JPY Trade Strategy

Today's USD/JPY call: Buy.

There’s hardly any reason to sell right now, but price has reached a key level, so I’m waiting for a correction and then a bounce.
The cleanest move would be a drop to C followed by a rise.

Scenario A

Buying the dip after a break above the recent high.
The green line just above Line A is a key level on the daily chart, so this price zone needs caution.
That said, the fundamentals also seem to favor yen weakness, so I think the upward momentum is strong.
It’s a bit hard to set a target beyond that, but for now around 155.2.

Scenario B

Aiming for a bounce from the price zone between around the letter B and Line C.
Price is falling right now, so selling short-term along the lines of the blue arrow is an option, but since every higher timeframe is pointing up, I don’t think you need to force it.
So the strategy is to buy once the short-term drop stops and price starts rising.
The target is 154.3, but I’d like to keep in mind that it may go beyond that.

Scenario C

If Line C breaks, it becomes hard for price to rise on a day-trading level.
The chance of entering a daily-chart range increases, so I’ll switch to a bearish bias for now.
Target is around 152.8.

Review

It was Scenario B.

A long from the pullback after the bounce off the pink line near the letter B.
Took profit as price was stopped several times at the target and started to come down. 35 pips