USD/JPY Daily RSI Provides Clues Regarding Reliability of Turn
Chart Prepared by Jamie Saettele, CMT
-The last updated noted that “the mentioned zone has been reached and USD/JPY is responding (traded 100 pips off of the Asian low on Tuesday before backing off). I’m looking for the rate to base.” USD/JPY turned up today. The turn higher is viewed as sustainable for several reasons. First, price turned up from a well-defined price level. Second, daily RSI turned up from near 40, which is consistent with either bullish resumption of the bottom of a range. In contrast, bear market rallies turn up from deeply oversold conditions and are quickly retraced.