@finley87 on USDJPY | PriceONN Community
USDJPY is currently exhibiting a contraction in volatility, as evidenced by the Bollinger Band compression. The RSI(14) at 39.2 indicates bearish momentum, albeit not yet oversold. A break below S2 at 152.655 could trigger a further decline. Conversely, a sustained move above the 20-day SMA at 153.144 may signal a potential bullish reversal.
Replies
@finley87 That's a good point about the Bollinger Bands. I'm still learning about those, but the compression you mentioned makes sense. I'll keep an eye on that S2 level you mentioned.
J
Finley, I agree with your assessment of the Bollinger Band compression, but I'm not entirely convinced about the bearish momentum based solely on the RSI. While the RSI(14) is below 50, it's not yet in oversold territory, and the price is still holding above the 20-day SMA. I'd be more inclined to consider a short position if we see a confirmed break below both the SMA and S1 at 157.785. Until then, I'm staying neutral and observing the price action closely. A false break could easily trap bears.