USDJPY Trade Setup – 24th Oct

USD/JPY begins the week perched just under the 153.00 big figure, an area that has repeatedly capped rallies and carries heavy optionality and stop activity. Our A+ (3/3) short-biased setup rests on three aligned pillars. Fundamentally: Markets lean toward easier U.S. policy guidance over the near term while BoJ risk skews less-dovish, narrowing policy-spread tailwinds that have powered the pair higher. Technically: 153.00 – 153.40 is a well-defined supply zone with multiple prior rejections and a clean downside ladder toward 151s/150s if momentum turns. Sentiment: Current sentiment adds confluence: crowded carry and dealer gamma around the big figures suggest asymmetric payoff in fading strength rather than chasing late longs, especially with intervention risk and headline sensitivity elevated at these levels. USDJPY Trade Setup: Pair / Asset Bias & Entries Stop / Invalidation Targets Why A+ (fundamentals, technicals, sentiment/positioning) Near-term catalysts (UK time) USD/JPY (152.9500) SHORT fade into 153.00 – 153.40; add on break <152.20 >154.1 T1: 151.20  T2: 150.50  T3: 149.80 Fundamentals: Markets price a Fed cut on Wed (98% per FedWatch), while BoJ meets Thu with hawkish dissent risk and rising talk of the next hike timing , both JPY-supportive. Technicals: Multi-attempt supply 153/153.25; fading into that offers asymmetric R:R. Sentiment: Large DTCC option interest (gamma/knock risk) around 150.00 & 151.20 today; stops likely clustered below 152.20 and above 153.20. Fri 24 Oct US CPI (rescheduled) 13:30; Wed 29 Oct FOMC decision 18:00; Thu 30 Oct BoJ decision window 02:45 – 04:00, Ueda presser 06:30; Thu 30 Oct US Q3 GDP 13:30. Chart by TradingView – USDJPY Trade Setup – 24th Oct Conclusion: We prefer selling strength into 153.00–153.40 with invalidation above the recent topside failure zone and a glide path toward 151.20 → 150.50 → 149.80 if U.S. yields soften or BoJ communication leans incrementally hawkish. Execution discipline matters around event risk: scale in after the initial data shock, respect liquidity pockets in the Asia open, and avoid chasing spikes through known stop bands. A sustained topside break and hold above resistance alongside firmer U.S. yields would negate the trade and prompt a reassessment. Until then, the alignment of fundamentals, levels, and positioning keeps the USD/JPY short-fade our highest-conviction idea for the week ahead.   For similar Forex Trade Signals please visit our commodities 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...