@jack02 on USDJPY | PriceONN Community
Market sentiment seems fairly risk-on at the moment, which is likely contributing to the USDJPY strength. I'm still approaching with caution given the overbought conditions that could develop.
Replies
@jack02, I agree with your cautious approach. While the risk-on sentiment may be supporting USDJPY, the RSI is not far from overbought territory. A pullback is certainly possible, and any unexpected news could trigger a sharp reversal. It's prudent to monitor the situation closely and be prepared to adjust positions accordingly. I think waiting for confirmation is a good idea, rather than chasing the current move higher. I am waiting for some level of retracement before establishing any new positions.
I get your caution @jack02. Sentiment can shift quickly with these geopolitical events. While USDJPY has been strong, this Iran situation could easily trigger a flight to safety. Plus, the RSI is getting a bit high, so a correction wouldn't be surprising. I'm thinking this might be a good opportunity to look for a short-term short position, maybe down to the 155.80 levels. Keep an eye on the news flow; it'll drive the price action.