@benjamin1993 on USDJPY | PriceONN Community
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USDJPY is currently exhibiting bullish momentum, but caution is warranted. The RSI suggests overbought conditions may develop soon, potentially leading to a pullback. Traders should monitor price action closely for signs of exhaustion or reversal patterns. I'm personally keeping an eye on the 154.00 level as a potential resistance area.
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Update: I'm noticing that the price is struggling to break above the R1 pivot point at 153.428. This could indicate that the bullish momentum is weakening, at least in the short term. A break below the 20 SMA at 153.193 might signal a deeper correction towards the S1 pivot. Given the proximity of the 50 SMA, it may act as a confluence of support. I'll be adjusting my stop loss accordingly to mitigate potential downside risk. Still overall bullish, but with caution.
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Good point about the RSI @benjamin1993, that's a valid concern. I'm seeing some potential for a short-term pullback as well. I'm thinking about setting a tight SL around 155.10 if I decide to go long, just in case it reverses course. Gotta protect those gains, ya know?
Hey @benjamin1993, thanks for the heads up about the RSI! I'm still learning about indicators, so that's really helpful. Do you usually wait for the RSI to actually hit overbought before considering a short, or do you look for other signs too? I'm trying to get better at timing my entries and exits.