USD/JPY Price Analysis and Trade Forecast: Daily Trading Signal

Daily Price Outlook

    * USD/JPY is trading around the 109.750 level, with a significant double top pattern forming near 109.700 on the two-hour timeframe.

    * An ascending trendline is providing crucial support, indicating a potential bullish dominance in the market. The 50-day exponential moving average, RSI, and MACD are also supportive of a bullish outlook.

    * Traders should consider buying opportunities near the 109.700 level, targeting resistance at 110.750. However, a break below the 109.300 support level could lead to a decline towards 108.700.

On Wednesday, the USD/JPY currency pair was seen trading around the 109.750 level. From a technical perspective, there is evidence of a double top pattern forming on the two-hour timeframe, posing a significant obstacle around the 109.700 level. If buyers can successfully push the price above this level, there is a strong possibility of a bullish continuation.

Furthermore, there is an ascending trendline providing crucial support to USD/JPY. This suggests that the bullish sentiment is likely to dominate the market. Additionally, the 50-day exponential moving average and other leading indicators such as RSI and MACD are holding steady, supporting the bullish outlook.

Given the current situation, today's strategy is to look for buying opportunities around the 109.700 level with a target resistance at 110.750. However, if the USD/JPY pair breaks below the support level of 109.300, it could potentially decline towards the next key support at 108.700.

It is crucial to keep a close eye on the 109.700 level as a break above it may attract buyers in the USD/JPY currency pair.

USD/JPY - Trade Idea

Entry Price – Buy Above 136.700

Stop Loss – 135.992

Take Profit – 137.731

Risk to Reward – 1 : 1.45

Profit & Loss Per Standard Lot = +$1030/ -$700

Profit & Loss Per Micro Lot = +$103/ -$70