USDJPY at the Crossroads of Overbought Conditions
Solid ECN – The Japanese currency has again become bearish against the U.S. Dollar. As shown on the USDJPY 4-hour chart, the American currency has risen above the Ichimoku cloud and is trading at about 149.1 as of this writing.
Currently, the pair is testing the 61.8% Fibonacci support while the RSI indicator is about to enter the overbought area. Therefore, it is not recommended to go long on the U.S. currency in a saturated market; it is better to wait for the pair to form new higher lows and lower highs.
That said, with the Awesome Oscillator's red bars, there is a high chance for the market to drop to the ascending trendline in red. This level of support can provide a decent entry point to join the bull market.
Conversely, the bull market should be invalidated if the price falls below the 148.8 mark.