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

Daily Price Outlook

- USD/JPY breaks rising channel, tests oversold levels

- RSI near 30 supports potential bounce from ¥146.60

- Reclaiming ¥148.095 could revive bullish sentiment

The U.S. dollar is rebounding modestly against the Japanese yen after a sharp intraday sell-off that broke decisively below the rising channel structure.

The pair fell from above ¥149, slicing through key support at ¥148.095 and triggering a steep drop toward a local low near ¥146.80. The price now sits just above the buy-entry zone at ¥146.607, where dip buyers may attempt to regain short-term control.

Technical damage has been done with the break below the 50-period SMA at ¥149.457, shifting the short-term bias to bearish.

However, momentum indicators suggest the decline may be overextended. The RSI currently reads 30.60, indicating the pair has reached oversold territory. If ¥146.607 holds, a recovery toward ¥148.655 is possible, in line with the previously tested support-turned-resistance level.

Below ¥146.607, further downside could accelerate toward the stop loss zone at ¥145.654. A break of this level may expose deeper levels at ¥144.979 and ¥144.226.

Conversely, a bullish reversal above ¥148.095 would shift the tone, reopening the path toward the 50-SMA at ¥149.457. Entry above ¥146.607 favors a rebound toward ¥148.655. Stop loss placed at ¥145.654 to manage downside exposure.

USD/JPY - Trade Ideas

Entry Price – Buy Above 146.607

Take Profit – 148.655

Stop Loss – 145.654

Risk to Reward – 1: 2.1

Profit & Loss Per Standard Lot = +$2048/ -$953

Profit & Loss Per Mini Lot = +$204/ -$95