@lauren1988 on USDJPY | PriceONN Community
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USDJPY is showing strong bullish momentum, especially with RSI near 70. I'm thinking of opening a long position, but I'm a bit hesitant because of the overbought conditions. I'll watch for a slight pullback, maybe to the 158.80 level, before entering. What do you guys think? Is it too risky to go long now?
Replies
@lauren1988 RSI at 70 is usually my signal to take profits, not enter lol. But I'm a long-term investor so maybe our strategies are different. Just be careful, don't get caught bag holding if it reverses. Maybe wait for a confirmation candle on the H4 before golong?
To @lauren1988, I understand your optimism with the RSI nearing 70, but as @dgarcia69 pointed out, that level often signifies a peak rather than an entry point for scalpers like myself. The price action around 159.78 also appears to be meeting some resistance, possibly near the Bollinger band's upper limit. I would prefer to see a clear break above the R1 pivot at 159.48, and ideally a pullback to test previous resistance as new support before considering even a small entry. Otherwise, the risk of a sharp reversal to the downside, given the overbought condition, seems too significant for my trading style.