USDJPY nearing highest RSI, staying aside is a position!

Having a look at the monthly studies of USDJPY pair, we easily can notice that, prices have reached the tough resistances consisting of 125.00 psychological and highs recorded in 2007.

USDJPY-Monthly

In the interim, RSI14 is touching the value of 80.00, which is close to the highest levels recorded in November 2014; while Trend Analysis Index shows that, a breakout below the bullish trend has occurred suggesting some kind of corrective actions.

In result, we believe that staying aside at current trading levels could be a good decision until we see whether the USDJPY will clear 125.00 steadily or not.

Areas of 122.00 is the key for any reliable selling setups, while 125.05 is the key for any bullish setups over medium-term basis.

Remember, staying aside is a position since current trading levels are very sensitive!

Amir El Araby

Co-Founder & Chief Global Strategist at FxComment.com, with 17 years’ experience in the technical analysis studies for FOREX, Commodities and Indices. Amir El-Araby worked as a mentor for many companies and institutes, where he presented new methods for trading in the financial market. Amir is a member of ESTA (Egyptian Society of Technical Analysts). Amir is also the official partner of Harmonic Trader (Mr Scott Carney) and the official instructor of harmonic trader association for Arab countries.

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