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

Daily Price Outlook

- USD/JPY slightly down at 148, immediate resistance observed at 146.47 and 147.87.

- RSI near overbought at 74; USD/JPY may face a pullback from resistance at 149.34.

- USD/JPY trading near 50 EMA at 147.70; double top pattern signals potential resistance.

As of January 18, the USD/JPY is witnessing a slight downtrend, currently positioned at 148, marking a decrease of 0.11%. The 4-hour chart analysis identifies a pivotal point at 144.95. The pair faces immediate resistance at 146.47, with further barriers at 147.87 and 149.34. On the support side, it finds initial support at 143.42, followed by 141.96 and 140.37.

The Relative Strength Index (RSI) stands at 74, indicating that the pair may be approaching overbought territory, potentially leading to a pullback. The Moving Average Convergence Divergence (MACD) is currently at 0.09, with the signal line at 0.774, suggesting a potential for upward momentum but warranting caution given the high RSI.

The 50-Day Exponential Moving Average (EMA) is at 147.70, indicating potential resistance for the pair. The observed chart pattern shows an upward channel, supporting the current uptrend, yet a double top pattern near 148.50 suggests significant resistance.

The overall trend for USD/JPY appears to be at a critical juncture, with a short-term bearish outlook. Traders might consider a sell limit at 148.500, with a take profit target of 147.100 and a stop loss at 149.350. In the near term, the pair is expected to test its resistance levels, particularly if it moves beyond the current resistance point.

USD/JPY - Trade Idea 

Entry Price – Sell Limit 148.500

Take Profit – 147.100

Stop Loss – 149.350

Risk to Reward – 1: 1.9

Profit & Loss Per Standard Lot = +$1400/ -$850

Profit & Loss Per Mini Lot = +$140/ -$85