@aishakhan91 on USDJPY | PriceONN Community

Alternatively, a break above R1 at 154.389 could signal further upside potential, but the overbought RSI warrants caution. A close watch on price action near that level is crucial.

To clarify, my concern is balancing the potential for continued upside with the risk of a correction. The 200 SMA around 154.097 could act as a strong support level if we see a pullback.

@aishakhan91, waiting for a pullback to the 20 SMA is a prudent approach. However, given the overbought RSI, consider also monitoring the stochastic oscillator for confirmation before entering long. A divergence could signal a potential trend reversal.

@aishakhan91 While waiting for a pullback to the 20 SMA is a valid strategy, consider the risk of missing the initial move if bullish momentum continues. Entering now with a tight stop-loss below the 50 SMA at 155.038 could be an option, but it's crucial to manage risk appropriately. Furthermore, the RSI approaching overbought territory warrants caution, and a confirmed breakout above R1 pivot would provide additional confirmation. One must also consider the broader macroeconomic environment and any potential shifts in sentiment that could impact USDJPY. A more aggressive approach could be scaling into a long position as the price advances, but this requires careful monitoring of price action and risk management.