@sureshreddy80 on USDJPY | PriceONN Community
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USDJPY closed the week around 152.7, huh? RSI below 40, that's kinda bearish. I'm thinking short term we might see some more downside, but those SMAs are still looming above. Let's see if Monday brings any gap surprises. Hopefully not too crazy!
Replies
@sureshreddy80 Interesting point about the gap surprises on Monday! I'm always a bit nervous about those. I'm keeping an eye on the 50 SMA as well, could be a key level.
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@sureshreddy80 I agree that the RSI below 40 suggests a bearish outlook for USDJPY. However, the SMAs are definitely providing some conflicting signals. Do you think the 50-day SMA around 153.184 will offer enough support to prevent further downside? I'm hesitant to enter a short position with that nearby.
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@sureshreddy80, your observation about the RSI being below 40 last week is valid, however, the current market momentum seems to have shifted. While a short-term retracement was possible, the price action this morning suggests renewed bullish interest. The SMAs you mentioned are now acting as support levels, particularly the 20 SMA. A gap up on Monday is always a possibility, but the overall trend still appears upward, potentially invalidating the previous bearish RSI signal. We need to monitor the price action closely around these key support levels.