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

Daily Price Outlook

- Uptrend Remains Strong: USD/JPY is trading well above its 50 EMA at 144.045, supporting the bullish bias.

- RSI in Overbought Territory: The RSI at 70 signals potential for a short-term pullback or consolidation phase.

- Critical Resistance at 147.248: A breakout above this level could drive the pair toward 147.866 and 148.567.

The U.S. Dollar (USD) is maintaining its upward trajectory against the Japanese Yen (JPY), currently trading at 146.768, up 0.22% for the session. The pair’s strength can be attributed to a combination of favorable U.S. economic data and continued monetary policy divergence between the Federal Reserve and the Bank of Japan.

The 4-hour chart shows USD/JPY trading above its pivot point of 146.231, with bullish momentum pushing the price towards the immediate resistance level at 147.248. Further resistance is noted at 147.866 and 148.567, where a breakout could spark another leg higher.

Technical indicators reveal a mixed outlook. The Relative Strength Index (RSI) has surged to 70, suggesting that the pair is now approaching overbought territory. This could result in a short-term pullback or consolidation phase as traders look to lock in profits. On the support side, the 50-day Exponential Moving Average (EMA) is positioned at 144.045, providing a solid floor that could limit any downward movement.

Immediate support stands at 145.585, followed by additional support levels at 145.104 and 144.609. A break below 145.585 could see the pair testing the 50 EMA near 144.045, though the overall uptrend remains intact as long as prices hold above the pivot point at 146.231.

Conclusion: With the pair nearing overbought conditions, traders may consider short positions if the price drops below 147.255, targeting 145.620, while placing a stop-loss at 148.227 to limit potential losses.

USD/JPY - Trade Ideas

Entry Price – Sell Below 147.255

Take Profit – 145.620

Stop Loss – 148.227

Risk to Reward – 1: 1.6

Profit & Loss Per Standard Lot = +$1635/ -$972

Profit & Loss Per Mini Lot = +$163/ -$97