Daily Price Outlook
* The USD/JPY currency pair is trading at 135.338, facing resistance at 135.350 due to a double top pattern on the two-hour chart.
* Technical indicators like the 50-day exponential moving average suggest an upward trend around the 135 level, with bullish sentiment dominating the market.
* If the USD/JPY breaks above 135, a buying position may be considered. However, it may be wise to await US inflation data for further price direction.
Examining the USD/JPY currency pair, it is currently trading at the 135.338 level. A double top pattern on the two-hour time frame is presenting solid resistance around the 135.350 level. When we consider technical indicators, such as the 50-day exponential moving average, they suggest an upward trend around the 135 level, and the closure of candles above the 135 level indicates that bullish sentiment is prevailing in the market.
Simultaneously, the Moving Average Convergence Divergence (MACD) and the Relative Strength Index (RSI) indicators are both situated in a buying zone. This suggests that if the USD/JPY pair successfully breaks through the 135.350 resistance level, it could potentially aim for the next target level of 136.
In summary, if the USD/JPY manages to break above the 135 level, investors may consider a buying position. Alternatively, it would be prudent to await US inflation figures to guide further price action in the Japanese yen today.
USD/JPY - Trade Idea
Entry Price – Buy Stop 135.404
Stop Loss – 134.904
Take Profit – 136.004
Risk to Reward – 1 : 2
Profit & Loss Per Standard Lot = +$600/ -$500
Profit & Loss Per Micro Lot = +$60/ -$50
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