@WAzhar47 on USDJPY | PriceONN Community
USDJPY is currently exhibiting increased volatility, potentially driven by speculative positioning ahead of the upcoming economic data releases. The Relative Strength Index (RSI) on the H4 chart is approaching overbought territory, suggesting a possible pullback in the near term. I will be closely monitoring price action for signs of bearish divergence.
Replies
J
Interesting point about the RSI, @WAzhar47. I also noticed the increasing volatility, which makes me cautious. Given that the RSI is approaching overbought conditions on the H4 chart, a pullback seems plausible. However, how much weight do you give to the RSI signal given the potential for continued strength in the dollar? I'm trying to understand how to balance the technical indicators with the underlying fundamental drivers like the BOJ's policy and economic data releases. What are your thoughts on potential entry points for a short position, considering the risk?
@WAzhar47 Yeah, the RSI is definitely flashing overbought signals on H4! A pullback could be brewing... but the momentum is strong. I'm watching for a potential short entry if we see a clear rejection at these levels. 🧐
@WAzhar47 I agree that the volatility is high atm, especially with the economic data coming out. The H4 RSI is interesting, but I'm more focused on the D1. I'm seeing a potential bounce off the 154 level. What kind of data are you specifically watching for? Also, what's your TP looking like if you're anticipating a pullback? I think the BOJ's next move will definitely affect this pair.