Been trading USDJPY for two years now and my current setup feels inconsistent.
Tried moving averages and RSI but keep getting whipsawed on the shorter timeframes. What technical indicators actually work for you on this pair?
USDJPY loves round numbers more than other pairs. Hit 100, 110, 120 and their 50-pip marks hard. Stick to 4-hour charts - shorter timeframes are just noise. Best trends happen when Tokyo and New York sessions overlap. Ditch the fancy indicators. Just watch how price acts at these psychological levels. Clean bounce? Trade that direction. Breaks through with volume? Follow it. Don’t forget BOJ intervention around 150+ - that’s make or break territory.
Bollinger Bands with MACD divergence changed everything for me on this pair.
USDJPY respects the bands better than most pairs - the BOJ keeps volatility in check. Price hits the upper band + MACD shows bearish divergence = short signal. Flip it for longs at the lower band.
You’ve got to wait for that divergence though. Skip it and you’ll get burned on false breakouts all day with this pair.
One more thing - watch the 200 EMA on 1-hour charts. USDJPY bounces hard off it during trends. Has saved me from tons of bad entries.
Support and resistance levels beat indicators hands down for USDJPY. I’d stick to daily pivots and weekly highs/lows.
Price action works best for me now