@aevans555 on USDJPY | PriceONN Community
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USDJPY's been on a tear, hasn't it? The overbought RSI is a bit of a concern, but the SMAs are still providing solid support. I'm watching for a potential pullback to the 154.00 level before considering any new positions. Definitely keeping an eye on those pivot points as well; R1 is looking like a key area.
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Adding to my previous thoughts: I'm thinking about using options to play this. A short call spread above 154.50 could be a decent way to capitalize on potential consolidation or a slight pullback, while still participating if it continues to trend upwards. Requires careful management of course. Gotta factor in theta decay and IV. The D1 chart looks a bit extended, so a period of sideways action wouldn't surprise me at all. I'll be monitoring the H4 chart for any signs of weakness. This pair needs a cautious approach imo.
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Update: I'm also looking at the Bollinger Bands. Price is currently testing the upper band, which could indicate a potential short-term reversal. Might be a good opportunity to implement a hedging strategy to protect against downside risk. Need to see how it reacts around 154.50 though.
@aevans555 I agree, the RSI is a concern. I'm also watching the 154.00 level as a potential support zone. However, the 200 SMA is providing a strong base, so a deeper pullback might be limited. A scalping strategy around these levels could be viable.