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

Daily Price Outlook

- Trendline Breakout in Play: USD/JPY eyes a close above 143.20 to shift bias.

- SMA Pressure: 50-SMA at 142.95 is the immediate resistance to watch.

- Momentum Rebuilding: RSI at 49.3 shows early signs of recovery from bearish territory.

USD/JPY is attempting to recover after briefly dipping below the 142.15 support zone, with price now testing both horizontal and descending trendline resistance near 142.95.

The pair remains within a broader downtrend but has shown signs of stabilizing near recent lows. A breakout above the 143.20 level could shift short-term momentum to the upside, opening room toward 144.31 — a key horizontal resistance.

The 50-period Simple Moving Average (SMA) at 142.95 is currently acting as dynamic resistance. Price is attempting to push above this barrier, and any sustained break would suggest a change in directional bias.

Meanwhile, the RSI has climbed to 49.3, recovering from sub-40 levels. Though not signaling strong momentum yet, it reflects improving sentiment.

The key trigger level for bullish continuation is 143.20. A clean break above this level would confirm a breakout from the descending trendline and a potential bullish reversal pattern. If confirmed, the next upside level to monitor is 144.31, followed by 145.15.

On the flip side, failure to break higher and a drop below 142.15 would reinforce the prevailing downtrend and bring 142.03 and 140.84 back into focus.

USD/JPY - Trade Ideas

Entry Price – Buy Stop 143.199

Take Profit – 144.312

Stop Loss – 142.157

Risk to Reward – 1: 1

Profit & Loss Per Standard Lot = +$1113/ -$1042

Profit & Loss Per Mini Lot = +$111/ -$104