USD/JPY bull flag forms at extremely oversold levels
By Monday's low, USD/JPY had fallen -12.5% from its July high and the daily RSI (14) had reached its most oversold level since 1996. And with a bullish inside day on Tuesday with a potential bull flag forming on the intraday timeframe, dups look good over the near-term for bulls. Whether it can truly capitalise on any decent rally depends on appetite for risk in general, but for now we look at a cheeky long.
Note
Dovish comments from the BOJ helped trigger a bout of yen weakness, to see USD/JPY formed a 3-day bullish reversal (Morning Star). If incoming US data surprises to the upside to send US yields higher, USD/JP Y stands a much better chance of reaching for 149. 
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.