I know…. the USDJPY is overbought. The RSI is above the 70 level indicative of an overbought condition in the USDJPY. The RSI in the USDJPY has not been this high since October 2022.
The problem is the USDJPY has been overbought over the last 6-7 days. During that time, the price has moved up for most of those days (only one day with a minor move lower).
As a result, traders who sold the overbought, are losing and losing big.
So how do you trade the USDJPY in that situation?
In this video, I outline how to do it where if wrong, you only lose a little. If you are right, and pick the top near a topside resistance target and right, you have great trade location to take advantage of a downside correction.
This article was written by Greg Michalowski at www.forexlive.com. Source