2026/01/20 USD/JPY Trade Strategy
Today's USD/JPY call: Sell.
The situation hasn’t changed from yesterday.
It feels like price has reached the range high.
I was able to sell from the part where it was turning down (making lower highs) in the morning, but from here there are two options: aim for the retracement after the low breaks, or aim for when price comes back up near the high once more.
As I wrote yesterday, I’m still watching out for a flow on the 1-hour or 4-hour level where price fails to make a new low → forms a double bottom and rises.
Review
It was a range all day.
Reading it as Scenario C, you could look for a short from the red circle.
However, this was a retracement after price had already reached the target line around 157.65 once, and on the 4-hour chart (H4) this price is the pullback low, so it’s important to trade with the scenario of a rise after a failed break of the low in mind.
In the end, price touched the 157.65 line once more and then the flow turned upward.
Seeing that flow, you exit with a small profit or at breakeven.
After that, it’s outside the plan and late at night, but buying from the blue circle is OK.
This article reflects the author's personal view of the market. It does not recommend any specific trade; all investment decisions are your own responsibility.
