Looking to Sell USD/JPY
Although we are indeed in the process of a major structural shift with the market looking to carve a longer-term cyclical bottom after establishing record lows by 85.50 back in October, the latest surge has been quite intense, leaving shorter-term daily studies well overbought. In fact, the daily RSI had recently peaked at its highest level in over 10 years. We are now finally starting to signs of a bit of a pullback and contend that short-term risks are for additional weakness towards th 78.00-80.00 area before the market resumes its newly adopted uptrend.
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