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

Daily Price Outlook

- USD/JPY maintains a bullish structure above the 50-period SMA, targeting 145.110.

- RSI at 69.82 signals strong momentum without immediate overbought risk.

- The pair needs to clear 144.640 for a sustained breakout, with downside risk contained at 143.424.

USD/JPY is trading around 144.389, maintaining its upward momentum within a well-defined ascending channel on the 1-hour chart. The pair has recently cleared the 50-period Simple Moving Average (SMA) at 143.242, reinforcing the bullish structure.

This move above the 50 SMA indicates strong buying interest, as this level often acts as a dynamic support in trending markets.

From a price action perspective, the recent candles have formed a sequence of higher lows, confirming the bullish trend.

The sharp upward move from the 143.000 region has been supported by a bullish engulfing candle, which provided the initial breakout above the 143.242 support.

This bullish momentum has carried the price towards the critical resistance at 144.640, the upper boundary of the ascending channel.

A successful break above this level could open the door to the next major resistance at 145.110, aligning with the take profit target.

Momentum indicators further support the bullish outlook. The Relative Strength Index (RSI) has surged to 69.82, indicating strong positive momentum, but without yet entering the overbought territory, suggesting room for further upside.

Additionally, the 50-period SMA remains a key support level, currently holding the bullish structure intact.

However, a failure to break above 144.640 could lead to a pullback towards the 144.002 mid-channel support or even the critical 143.424 stop loss level, where buyers are expected to re-enter aggressively.

USD/JPY - Trade Ideas

Entry Price – Buy Above 144.078

Take Profit – 145.110

Stop Loss – 143.424

Risk to Reward – 1: 1.5

Profit & Loss Per Standard Lot = +$1032/ -$654

Profit & Loss Per Mini Lot = +$103/ -$65