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

Daily Price Outlook

- Bullish Momentum: Break above 1.618 Fibonacci level at 156.32.

- Overbought Signal: RSI near 70 suggests possible pullback.

- Support Zone: Immediate support lies at 155.43, reinforcing a bullish stance if maintained.

The USD/JPY pair is showing strong bullish momentum, currently trading around 155.87. The recent move upwards has been supported by a breakout past the 1.618 Fibonacci extension at 156.32, which now serves as a key level to watch.

The next significant resistance levels are at 157.31 and 158.01. A break above these could indicate further upward momentum, especially if the broader dollar strength persists.

On the support side, immediate levels to monitor are 155.43, followed by 154.50 and 154.18. The 50-period EMA at 153.58 continues to underline the bullish trend, as the price remains well above this indicator, suggesting sustained buying pressure.

The RSI sits at 69.44, nearing overbought territory, signaling that a short-term pullback could occur. However, as long as the price stays above the pivot at 155.43, the bullish outlook is likely to remain intact.

Given the technical landscape, a potential entry at 155.43 with a target around 156.71 appears favorable, aligning with the recent bullish trend. Caution is warranted near the overbought RSI, as a correction might bring prices back toward the immediate support zones.

The USD/JPY remains bullish above 155.43, with targets near 156.71. Overbought RSI suggests a watchful eye on potential pullbacks, though upward momentum is favored. 

USD/JPY - Trade Ideas

Entry Price – Buy Limit 155.426

Take Profit – 156.710

Stop Loss – 154.283

Risk to Reward – 1: 1.12

Profit & Loss Per Standard Lot = +$1284/ -$1143

Profit & Loss Per Mini Lot = +$128/ -$114