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

Daily Price Outlook

- USD/JPY tests critical support at 157.544, with downside risks toward 156.904.

- 50 EMA reinforces bearish momentum, capping gains near 158.475.

- RSI indicates weak sentiment; a break below the pivot may accelerate losses.

USD/JPY is trading at 157.930, down 0.25%, reflecting a bearish tone as the pair struggles to hold above key technical levels. The pivot point at 158.475 remains a critical marker, and the pair's inability to reclaim this level suggests further downside pressure.

The 50 EMA at 157.544 acts as near-term resistance, aligning with broader selling momentum. RSI readings indicate bearish sentiment, with the pair at risk of deeper declines if momentum persists.

Immediate resistance lies at 159.406, followed by 160.406 and 161.117, which may limit any bullish recovery.

On the downside, immediate support is found at 156.904, with further levels at 155.975 and 154.924 offering potential buffers against an extended selloff. A sustained move below the pivot point could trigger a decline toward 156.904 and beyond.

Traders considering short positions may look to sell below 158.448, targeting 156.904 while setting a stop-loss at 157.074.

A break above 158.475 would be required to negate the bearish outlook, paving the way for a test of 159.406. With a cautious sentiment prevailing, traders should monitor price action near the pivot for further clues on directional strength.

USD/JPY - Trade Ideas

Entry Price – Sell Below 158.448

Take Profit – 1.24338

Stop Loss – 157.074

Risk to Reward – 1: 1.7

Profit & Loss Per Standard Lot = +$1374/ -$808

Profit & Loss Per Mini Lot = +$137/ -$80