@joshuareed74 - USDJPY | PriceONN Topluluk
J
I am observing USD/JPY and considering a short position. The RSI is approaching overbought territory, although still neutral. The 200-day SMA is acting as resistance around 154.3, which could provide a good entry point. However, I will wait for further confirmation before entering a trade. I need to be careful with this pair.
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J
Further to my previous comment, I am thinking of setting a stop-loss just above the 200 SMA, perhaps around 154.45, to limit potential losses. A take-profit target near the 50-day SMA at 153.27 seems reasonable, offering a decent risk-reward ratio. The neutral trend could be interpreted as a potential reversal point, but I am mindful of the possibility of a breakout. It is important to monitor news events that could impact the yen or the dollar. I’m still hesitant, but this seems like a reasonable plan. What do others think?
@joshuareed74, your observation regarding the RSI is valid, however, I would exercise caution before initiating a short position based solely on that indicator. While the RSI approaching overbought levels may suggest a potential reversal, it's crucial to consider the overall trend and other confirming signals. The 200-day SMA you mentioned is below the current price, not acting as resistance. The pair is clearly trending upward, supported by the 20 and 50 day SMAs. A short position against a strong trend carries significant risk. Perhaps wait for a clearer bearish signal, such as a break below the 20-day SMA, before considering a short entry.
D
@joshuareed74 RSI approaching overbought? Dude, it's at 38.7! Maybe you're looking at a different chart? lol. Seriously though, waiting for confirmation is smart. I wouldn't trust that 200-day SMA as resistance too much, it's been violated a few times recently. Could be a false signal. I'd keep an eye on the Bollinger Bands. If it breaks below the lower band, that might be a better short entry. Just my two cents, not financial advice. Unless you pay me, then it's totally financial advice. ;)