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

Daily Price Outlook

- USD/JPY at 146.632 shows a minor decline; key pivot at 145.87 with bearish indicators.

- Resistance levels up to 149.04; support down to 143.17 signaling cautious trading environment.

- RSI at 38 and negative MACD suggest careful buy strategy above 146.671 with defined targets and stop.

The USD/JPY pair on February 1st presents a nuanced landscape for traders, with a slight decline of 0.18%, positioning the pair at 146.632. This movement indicates a cautious market sentiment as investors parse through various economic cues and technical signals.

A technical analysis reveals the pivot point at 145.87, serving as a foundational level for the pair's current dynamics. Resistance is encountered first at 147.00, with subsequent barriers at 147.87 and 149.04, delineating the potential upward journey for the pair. Conversely, immediate support materializes at 145.00, followed by more substantial levels at 144.08 and 143.17, essential for buffering any downward trends.

The Relative Strength Index (RSI) at 38 leans towards a bearish sentiment, hovering close to the oversold territory but without fully committing. The Moving Average Convergence Divergence (MACD) indicator further accentuates this stance, with a reading of -0.23 beneath the signal line of -0.11, implying a potential continuation of the current downtrend.

Positioned around the 146.600 level, the USD/JPY pair finds itself at a critical 50% Fibonacci retracement level, suggesting a significant technical juncture. The 50-day Exponential Moving Average (EMA) at 147.08 stands slightly above the current price, possibly acting as resistance in the near term.

Given these technical observations, the current sentiment for the USD/JPY pair leans towards a cautious outlook. Traders might consider a strategic entry above 146.671, with an eye for taking profits at 147.640 while placing a stop loss at 145.894 to manage potential risks effectively.

USD/JPY - Trade Idea 

Entry Price – Buy Above 146.671

Take Profit – 147.640

Stop Loss – 145.894

Risk to Reward – 1: 1.25

Profit & Loss Per Standard Lot = +$969/ -$777

Profit & Loss Per Mini Lot = +$96/ -$77