@sydJames on USDJPY | PriceONN Community
Given the current overbought conditions on USDJPY, I anticipate a potential pullback early next week. The RSI is nearing 70, signalling caution. I'll be watching for confirmation of a reversal around the 159.80 level. A break below 159.50 would confirm the bearish scenario and could open the door for a deeper correction.
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Also, considering the news regarding the Dollar Index (DXY) strength due to geopolitical tensions, a risk-off sentiment could further pressure USDJPY. I'm adjusting my stop-loss orders to account for increased volatility. It's crucial to remain flexible and adapt to changing market conditions. A weaker yen might not be enough to offset dollar strength if tensions escalate.
D
Hey @sydJames, I hear you on the potential pullback for USDJPY, especially with that RSI pushing 70. It's definitely something to watch. However, I'm a bit more optimistic given the current market action. We're seeing it consistently push above the SMAs, and the DXY strength mentioned in is certainly providing a tailwind for dollar pairs. I'm not seeing a clear reversal signal yet, and the price is even above R1. I think we might see it test R2 before any significant drop, or at least before a confirmed bearish move. I'll keep an eye on the 159.50 level you mentioned, but for now, I'm cautiously bullish on this pair, especially during this thin Asian session where momentum can sometimes surprise.
R
Hey @sydJames, I read your analysis on USDJPY potentially pulling back. I get where you're coming from with the RSI hitting 70, that's definitely a signal to be careful. And the news about the DXY and geopolitical stuff does add some risk-off pressure, which could hurt USDJPY. I'm just not entirely convinced we'll see a big drop immediately. The dollar seems to be holding up surprisingly well given all the global uncertainty, almost like it's still seen as a safe bet despite everything. I'm personally watching the 159.50 level too, but I'm leaning towards it holding as support rather than breaking decisively. Maybe a small dip and then continuation upwards if the geopolitical situation keeps the dollar bid. I might wait for Monday's open to see how the market reacts to the weekend news.