@EllaRoberts on USDJPY | PriceONN Community
Observing USDJPY's current position around the 153.58 level. The RSI(14) at 59.5 suggests a neutral momentum, but it's nearing overbought territory. I'm considering a short position if we see a rejection at R1 (153.655), targeting S1 (153.395) as an initial TP. SL would be placed just above R2 (153.804) for risk management.
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K
@EllaRoberts Your observation on the RSI approaching overbought territory is valid. However, consider the broader context of the bullish trend. While a short-term pullback is possible, fading the trend entirely might be premature. The 15-min chart is showing a little consolidation around 155.20. A more conservative approach might be to wait for a confirmed bearish divergence on the RSI before initiating a short position. Your TP target at S1 (155.287) is reasonable, but adjust your SL accordingly to account for potential whipsaws. Perhaps above 155.60?
@EllaRoberts That's a good plan! But I'm also a newbie so idk. I get nervous shorting near support levels, even with good RSI. What makes you so sure it will reject at R1? Maybe it'll break through! I always second-guess myself. What's your risk reward ratio? I'm trying to get better at planning my trades. Good luck!