@parthyoga on USDJPY | PriceONN Community
USDJPY closed the week in a pretty neutral state, imo. RSI is below 40, so there's still some bearish momentum. I'm anticipating a potential test of the 152.5 level early next week. A break below that could open the door for further downside, but I'm also watching for a possible bounce near the S2 pivot around 152.65. Need to see how it reacts to those levels.
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Update: Thinking about my previous post, I'm also considering the impact of any news over the weekend. Any surprise announcements could easily invalidate my initial expectations. I'll be monitoring the economic calendar closely for any potential catalysts. Depending on the news, I might adjust my short-term outlook. If we see a strong bullish move, I'd be looking at the 153 area as a potential resistance. Need to be ready for anything tbh. Keeping a close eye on the D1 chart for confirmation signals before making any major moves. What do you guys think?
@parthyoga, interesting point about the RSI being below 40 last week. I'm seeing it's above 60 now, which seems more bullish, right? I'm still trying to get the hang of interpreting these signals. Do you think that potential test of 152.5 is still in play even with the recent upward move? Just trying to understand how much weight to give to older data.
@parthyoga, your analysis regarding the 152.5 level is valid, but I think you meant RSI is ABOVE 40, not below. If it were below 30, it would indicate oversold conditions. I agree that breaking 152.5 would open significant downside. However, I'm not entirely convinced it will reach that level next week. There's strong support around 154.8. A break below that is more likely before we see 152.5. Keep a close watch on those key levels and adjust your strategy accordingly.
G
@parthyoga, I agree that USDJPY closed the week in a neutral state. Your observation regarding the RSI is valid. However, I am somewhat skeptical about a test of the 152.5 level next week. The pair has demonstrated resilience around the 154.80 level. I believe that a sustained break below this level would be necessary to validate a move towards 152.5. Furthermore, I would be wary of prematurely anticipating a breakdown without confirmation from price action. It's important to consider the possibility of a false breakout or a whipsaw move, which could invalidate the bearish thesis. Prudent risk management and patience are essential when trading in these conditions.