JPYUSD trade ideas
Fundamental Market Analysis for May 6, 2025 USDJPYUSDJPY:
The Japanese Yen (JPY) declined against its US counterpart during Tuesday's Asian session, albeit without any follow-through selling. Despite the Bank of Japan's (BoJ) ‘restrained’ guidance last Thursday, Japan's rising inflation and prospects for continued wage increases leave the door open for further policy tightening by the central bank. In addition, uncertainty over US President Donald Trump's trade policy and rising geopolitical tensions continue to act as tailwinds for the safe-haven yen.
Meanwhile, the prospect of more aggressive rate cuts by the Federal Reserve (Fed) is not helping the US Dollar (USD) attract meaningful buyers and is helping to limit the upside for the USD/JPY pair. Traders also seem unwilling to wait for more signals on the Fed's policy outlook before positioning for the next leg of directional movement. Thus, the main focus will be on the outcome of the two-day FOMC meeting, which starts this Tuesday and which will give the dollar a fresh impetus.
Trading recommendation: BUY 143.90, SL 143.60, TP144.80
USDJPY: Detail Technical Analysis and USDJPY CharacteristicsIn this long video, I go through USD/JPY short idea in 2 parts:
Part 1: Detailed Technical Analysis and Elliott Waves
1. Head and shoulders - daily
2. Completion of Elliott Waves
3. Breaking down of A-B-C
4. Measurement rules on profit targets.
Part 2: USDJPY as a product (characteristics)
1. It's a flight-to-safety product similar to Gold
2. thus also a short equity markets product.
2. It is a short dollar product.
USDJPY Tuesday AMThe overall weekly direction is quite bearish as there has been a recent bullish days retracement. If by 9:30 AM Eastern standard time we see this pair break internal liquidity by the time the market opens then we can expect this pair to go for more shorts. But given the timing of the week with the news, I’m expecting this pair to build momentum to take buyside liquidity before stamping through lower price. I expect to see this pair range a bit until Wednesday’s news.
USDJPY 1HThe chart you provided is a 1-hour USD/JPY (U.S. Dollar / Japanese Yen) chart showing a bearish pattern analysis. Here's a quick breakdown:
Descending Triangle Pattern: The chart outlines a descending triangle pattern with multiple lower highs (marked by red arrows) and horizontal support (marked by green arrows and a horizontal line).
Sell Zone: The area near the horizontal resistance has been labeled the "Sell Zone," indicating a likely entry point for short positions.
Breakdown Confirmation: The price has broken below the triangle’s support line, followed by a downward arrow and a label "TARGET SUCCESSFUL", suggesting that the bearish target has been hit.
Technical Interpretation: This implies a bearish sentiment with a completed breakdown and target fulfillment, likely indicating a pause or reversal opportunity ahead.
Would you like help identifying the next possible move or support/resistance levels?
USDJPY NEXT MOVE Assumption of a Bullish Continuation (Without Confirmation)
• Disruption: The projected upward path to the “Double Top Resistance” presumes a bullish continuation without confirming signals (e.g., bullish candlestick patterns, volume spikes, or RSI divergence).
• Alternative View: Price is currently rejecting the resistance zone and heading downward—this could be the start of a deeper retracement or trend reversal, not just a dip.
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2. “Strong Support” Zone is Based on a Single Bounce
• Disruption: The “Strong Support” zone is derived from a single historical reaction. It might not hold on the next test, especially if momentum and volume increase on the way down.
• Counterpoint: Stronger support typically comes from multiple prior reactions or a broader consolidation zone.
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3. Lack of Consideration for Bearish Structure
• Disruption: The broader structure is bearish (from left to right on the chart), with lower highs and lower lows. The analysis skips over this longer-term downtrend context.
• Alternative: Instead of anticipating a return to 148, traders might watch for short setups if price fails to break back above the resistance cleanly.
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4. Volume Decline During the Recent Rally
• Disruption: The bullish leg into early May shows diminishing volume. This divergence between price increase and falling volume weakens the bullish case.
• Warning Sign: Could indicate a bull trap, followed by a sharper fall through the support.
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5. Overemphasis on “Double Top” without Neckline Break
• Disruption: The projected double top at ~148 assumes that level will be revisited. But without a confirmed breakout through 144.000, it’s premature to predict such a move.
• Risk: Traders buying now on this expectation may be caught in a pullback that dips below the “Strong Support.”
Bullish Breakout from Falling WedgeThe exchange rate of the US dollar against the Japanese yen shows a slight downward trend. The opening rate of the US dollar against the Japanese yen on that day was 144.8740. During the trading session, it hit a high of 144.9890 and a low of 144.085. The latest trading price is 144.082, which is 0.60% lower than the closing price of 144.9180 in the New York foreign exchange market on the previous trading day.
Buffett has warned of the risks of the US dollar, and funds may flow to safe - haven assets such as the Japanese yen, which may have had a certain impact on the exchange rate of the US dollar against the Japanese yen. On the other hand, from a technical perspective, according to the chart data, the "Daily Chart PP" of the US dollar / Japanese yen shows that its pivot point is at 158.27, and the maximum coverage range of the corresponding support and resistance is 157.29 - 159.33. The current exchange rate is at a relatively low level and may be attracted by the lower support level.
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UJ Impulse Wave 5 IncomingFX:USDJPY seems to have finished Wave 4 being a Correction Wave of the Elliot Wave Theory and looks to be prepping for the start of Wave 5 being an Impulse Wave!
Now Price has not only made a 38.2% Retracement to 143.6 of the 145.941 Swing High that ended Wave 3 but is testing Break of Previous Structure being Past Resistance attempting to turn it into Support if enough Buyers enter the market in this opportune area.
Price Action during the Correction of Wave 4 has formed a Falling Wedge Pattern, typically seen as a Continuation Pattern. For this to be fact, we will need to see a Bullish Breakout to the Falling Resistance followed by a successful Retest of the Break where the Long Opportunities should present themselves.
Once Wave 5 is confirmed, we can expect Price to work from here and potential reach the Potential Range Target of ( 148.662 - 150.245 )
USDJPY Weekly CLS I Continuation setup I Target Weekly CLS HighHey, Market Warriors, here is another outlook on this instrument
If you’ve been following me, you already know every setup you see is built around a CLS range, a Key Level, Liquidity and a specific execution model.
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My trading system is completely mechanical — designed to remove emotions, opinions, and impulsive decisions. No messy diagonal lines. No random drawings. Just clarity, structure, and execution.
🧩 What is CLS?
CLS is real smart money — the combined power of major investment banks and central banks moving over 6.5 trillion dollars a day. Understanding their operations is key to markets.
✅ Understanding the behaviour of CLS allows you to position yourself with the giants during the market manipulations — leading to buying lows and selling highs - cleaner entries, clearer exits, and consistent profits.
🛡️ Models 1 and 2:
From my posts, you can learn two core execution models.
They are the backbone of how I trade and how my students are trained.
📍 Model 1
is right after the manipulation of the CLS candle when CIOD occurs, and we are targeting 50% of the CLS range. H4 CLS ranges supported by HTF go straight to the opposing range.
📍 Model 2
occurs in the specific market sequence when CLS smart money needs to re-accumulate more positions, and we are looking to find a key level around 61.8 fib retracement and target the opposing side of the range.
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USD/JPY BEARS ARE GAINING STRENGTH|SHORT
USD/JPY SIGNAL
Trade Direction: short
Entry Level: 144.163
Target Level: 139.852
Stop Loss: 147.018
RISK PROFILE
Risk level: medium
Suggested risk: 1%
Timeframe: 15h
Disclosure: I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analysis.
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USDJPY Analysis week 19🌐Fundamental Analysis
Signs of rising inflation in Japan still open the door for the BoJ to tighten interest rates further. Moreover, persistent geopolitical tensions and uncertainty over US President Donald Trump’s trade policies have kept investors on edge. Moreover, bets on more aggressive easing by the Federal Reserve will limit any meaningful gains in the dollar and help limit deeper losses for the lower-yielding yen.
🕯Technical Analysis
After a breakout and bounce late Friday, USDJPY is looking to continue its strong uptrend. Last week’s high of 145.900 will act as a temporary buffer before the pair heads towards the weekly resistance around 148.000. On the other side, last week’s liquidity sweep converging with the trendline also creates an important buying zone for the week if the pair reverses. The support level that the bears are strong at is also the weekly support level of interest around 142.000.
📈📉Trading Signals
SELL USDJPY 148.000-148.200 Stoploss 148.500
BUY USDJPY 142.000-141.800 Stoploss 141.500
USDJPY D1 | Bullish Bounce Off 61.8%Based on the D1 chart analysis, the price is falling toward our buy entry level at 143.53, a pullback support that aligns with the 61.8 Fibonacci retracement.
Our take profit is set at 145.49, an overlap resistance.
The stop loss is placed at 141.61,a pullback support.
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Bearish reversal?USD/JPY is rising towards the pivot which has been identified as an overlap resistance and could reverse to the 1st support which is a pullback support.
Pivot: 146.90
1st Support: 142.06
1st Resistance: 150.92
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