Chart of the day: USD/JPY – FXStreet

The rally in the USD/JPY has been relentless since the break of 106.25 as it has been tracking US bond yields higher as of late. Daily RSI is very overbought and we are testing a multi year trend line from the May 2015 highs. Traders may be trying to “fade” this move, but the risk remains for a break of 109.30 may accelerate a short squeeze to the 110.00 level. A move below the 108.30 level could trigger some near term sell stops.

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