Daily Price Outlook

- USD/JPY faces key resistance at 162.1200, a break above which could accelerate the uptrend.

- The 50-day EMA at 161.1100 provides a crucial support level to watch.

- The RSI indicates potential for further upside, but traders should remain vigilant for signs of reversal.

The Japanese yen is experiencing a brief respite from its recent slide against the U.S. dollar, with USD/JPY trading down slightly at 161.705. The 4-hour chart paints a cautious picture, with the pair hovering just below a pivotal resistance level at 162.1200.

This level is a key battleground for bulls and bears alike, and a decisive break above could signal a resumption of the dollar's upward trajectory, with potential targets at 162.3800 and 162.7310.

However, the 50-day Exponential Moving Average (EMA) at 161.1100 is acting as a significant support zone.

A failure to break above the pivot point could see the pair retreating towards this EMA, potentially even further down to the support levels at 160.7320 and 160.2550. The Relative Strength Index (RSI) reading of 62 suggests the pair is not yet overbought, leaving room for further upside if buyers regain control.

Given the current technical setup, traders are advised to approach with caution. A prudent strategy would be to wait for a confirmed break above 162.1200 before initiating long positions.

Alternatively, aggressive traders could consider buying above 161.470, with a stop-loss order placed below 161.184. The initial target for profit-taking would be the pivot point at 162.120.

USD/JPY Price Chart - Source: Tradingview
USD/JPY Price Chart - Source: Tradingview

USD/JPY - Trade Ideas

Entry Price – Buy Above 161.470

Take Profit – 162.120

Stop Loss – 161.184

Risk to Reward – 1: 2

Profit & Loss Per Standard Lot = +$650/ -$286

Profit & Loss Per Mini Lot = +$65/ -$28



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