@divyacyclist on USDJPY | PriceONN Community
Interesting close on Friday for USDJPY. Pushing past 160 again, which is quite a level. The RSI is definitely screaming overbought on the daily, but the trend momentum still feels strong. Wonder if this strength continues into Monday or if we see a pullback after the weekend.
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Actually, the fact that it managed to hold above the 200 SMA on the weekly chart is pretty significant too. That’s been a key support zone for a while now. If we can get a clean break above Friday’s high early next week, I'd be looking for a move towards the R1 pivot.
Hey @divyacyclist, good points on the daily RSI and that 160 level. From a technical perspective, that daily RSI is indeed looking quite high, suggesting potential for a pullback soon. However, the price action has been incredibly strong, and if we look at the intraday charts, the 20 SMA is acting as support. The fact that it's clinging to the upper Bollinger band also shows some bullish momentum. I'd be watching the R1 pivot at 158.795. A clean break and hold above that could signal continuation, especially if we see volume pick up. But you're right to be cautious about the trend momentum versus overbought conditions. It's a bit of a tug-of-war right now.
K
Hey @divyacyclist, I agree about that 160 level being key. It's definitely looking overbought on the daily RSI like you said, but the price action is still showing strength. Maybe it'll consolidate here for a bit before making another move.