USDJPY overbought, now should go down
USDJPY reached to the upper edge of it's ranging channel on weekly, if Japan's economy data not giving a boost, I expect it to respect the trend line and going back downward.
RSI on 1H, 2H and 4H all over bought. History shows that when USDJPY reached overbought, it always followed with decent retracement, so I believe it should follow same pattern.
If trend line is respected, you may want to set your target to the lower edge of the channel around 109.3 if you hold trades over weekend. I only do day trading so the current RR is already more than enough (Providing it reaches my target within the next 20 hrs)
Entry: 110.310 or any price above 110.237 but below 110.346.
Price going higher than 110.446 invalidates my analysis.
SL: slightly above 110.446; I set it as 110.466 tight
TP: Fib based, to 109.8; but if trend follows, I think it should reach 109.3
Expected Pips: 20-50 pips
Expected Timeline: max 1 day
RSI on 1H, 2H and 4H all over bought. History shows that when USDJPY reached overbought, it always followed with decent retracement, so I believe it should follow same pattern.
If trend line is respected, you may want to set your target to the lower edge of the channel around 109.3 if you hold trades over weekend. I only do day trading so the current RR is already more than enough (Providing it reaches my target within the next 20 hrs)
Entry: 110.310 or any price above 110.237 but below 110.346.
Price going higher than 110.446 invalidates my analysis.
SL: slightly above 110.446; I set it as 110.466 tight
TP: Fib based, to 109.8; but if trend follows, I think it should reach 109.3
Expected Pips: 20-50 pips
Expected Timeline: max 1 day
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