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

Daily Price Outlook

- USD/JPY dips to 141.767, down by 0.74%, testing key support levels.

- Oversold RSI conditions hint at a potential shift in market sentiment.

- Price action below the 50 EMA signals a bearish trend but faces pivotal resistance at 141.93.

The USD/JPY pair experienced a downward movement of 0.74%, settling at around 141.767. This decline marks a notable shift from recent sessions, with the pair now grappling with the pivotal 138.90 level, which stands as a significant pivot point in the current price dynamics. The chart suggests immediate resistance forming at 141.93, with subsequent barriers at 144.79 and 147.82. On the downside, the pair finds immediate support at 138.81, with further cushions at 135.86 and 133.19, which could be tested should the bearish trend continue.

Technical indicators display a bearish overtone, with the Relative Strength Index (RSI) deeply entrenched in oversold territory at 22, signaling potential exhaustion in selling pressure and the possibility of a reversal if market conditions permit. The Moving Average Convergence Divergence (MACD) stands at -0.373 with a signal line of -0.719, suggesting that downward momentum is waning, offering a glimmer of optimism for bulls in the market.

The pair's trading below the 50-day Exponential Moving Average (EMA) of 143.89 reinforces the short-term bearish trend. However, chart patterns and RSI levels warrant attention for signs of a potential correction or continuation of the trend.

While the USD/JPY pair shows a bearish trend in the short term, the oversold RSI indicates that a reversal could be imminent. Should the pair manage to recapture the 141 level, it could set the stage for a retest of the immediate resistance at 141.93. Investors will closely monitor the pair for signs of stabilization or further decline, as the currency navigates through key technical junctures in the days ahead.

USD/JPY - Trade Idea 

Entry Price – Buy Limit 141.074

Take Profit – 143.232

Stop Loss – 139.465

Risk to Reward – 1: 1.3

Profit & Loss Per Standard Lot = +$215/ -$160

Profit & Loss Per Mini Lot = +$21/ -$16 (edited)