JPY-USD Support and Resistance Levels

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The JPY has been uncharacteristically volatile. The chart above shows JPY-USD daily Close from Jan 2025. It has been plotted in different colors at different points in time after clustering by K-Means Clustering. The dashed lines are the Support and Resistance levels as calculated by proximity to cluster centers. Note that the width of dashed lines from each other varies. And note that the widest dashed lines lie between 156.13 and 150.13. We shall come back to this point later when we provide the instructions for trading  trading 

But first, visualize JPY-USD  recent volatility in the  monthly chart from 2015  below; and see that it is now at the highest level of volatility, as can be seen by the number of peaks and troughs. 


How to use the Support and Resistance levels in trades.

See the instructions below the chart. The Green arrows means a Buy point and the Red arrows a Sell point. 

For each trade, a stop-loss and take-profit level is set to manage risk and lock in profits. Here’s how the logic works:

  • For a Buy (Breakout):

    • Enter when price breaks above a resistance level.
    • Set a stop-loss just below the breakout level (to limit loss if the breakout fails).
    • Set a take-profit above the level (to capture gains if the uptrend continues).

  • For a Sell (Breakdown):

    • Enter when price breaks below a support level.
    • Set a stop-loss just above the breakdown level (to limit loss if the breakdown fails).
    • Set a take-profit below the level (to capture gains if the downtrend continues).

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