USDJPY Trade Setup – 19th Feb

USDJPY is starting today with clear rates-led direction: the U.S. dollar remains supported by resilient yield dynamics, while Japan continues to lag in policy normalization relative to the Fed’s “higher for longer” messaging. With the Dollar Index firm and U.S. 10-year yields stabilising at elevated levels, the balance of risks still favours USD strength on pullbacks, particularly if price holds above key near-term supports. In this environment, USDJPY is most likely to be driven by shifts in U.S. rate expectations, real-time risk sentiment, and headline flow around central bank commentary, making it a high-conviction candidate for a structured, rules-based intraday plan. USDJPY Trade Setup: Pair Bias & Entries Stop / Invalidation Targets Why A+ (Fundamentals, Technicals, Sentiment) Price Action Driver Near-term catalysts (UK time) USDJPY LONG – Buy dips 155.00 – 154.80 or break/hold above 155.55 Below 154.40 (breaks prior swing / momentum structure) T1: 156.20 T2: 157.00 Fundamentals: USD supported by hawkish-leaning Fed minutes & firm yields; JPY softer in risk-on tape. Technicals: Higher-high / higher-low structure with momentum continuation. Sentiment: “Buy USD” bias into US data; stops likely above 155.50 / 156.00. (Reuters) US10Y & DXY (rates-led USD) Thursday 19th Feb: 13:30: US claims/Philly Fed/trade bundle; Fed speakers   Chart by TradingView – USDJPY Trade Setup – 19th Feb Conclusion USDJPY remains a rates-driven opportunity, with the highest-probability edge coming from buying controlled dips or a clean break-and-hold above nearby resistance, provided U.S. yields and the broader USD tone stay supported. As always, the trade is only valid while price respects the defined invalidation level; a decisive move through that line would signal that the current momentum regime has changed and the setup should be stood down. Keep position sizing disciplined around today’s scheduled catalysts, expect volatility spikes around key U.S. releases and Fed commentary, and let the market confirm direction before adding risk. We will monitor the data and headline tape through the session and adjust our playbook if conditions materially change. This analysis is for informational purposes only and does not constitute investment advice. Trading involves risk; manage exposure accordingly. For similar FX Trade Setups please visit our FX Trade Ideas page. Please visit our Disclaimer page. Disclaimer Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. TerraBullMarkets.com does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets or any financial instrument involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of TerraBullMarkets.com nor any of its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page. TerraBullMarkets.com and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. TerraBullMarkets.com and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted. The author and TerraBullMarkets.com are not registered investment advisors and nothing in this article is intended to be investment advice. TerraBullMarkets...