- The USD/JPY continues to rise, reaching 154.00s.
It might be developing a Measured Move pattern with 156.11 as the eventual goal. - The RSI is overbought, but it is indicating that a correction might be approaching.
Trade for USD/JPY is in the upper 154.00s. It has created what appears to be a three-wave, or Measured Move, price pattern, denoted as A, B, and C.
When it comes to Measured Moves, wave C’s finish can be confidently predicted because it frequently occurs at the Fibonacci ratio of wave A, or the point at which wave C and wave A are of identical length. Wave C often extends to a ratio of A of 0.618 at the very least.
USD/JPY Daily Chart
The conclusion of C It will roughly hit 156.11 if it ends equal to A, and there’s a chance the rally might continue all the way to that high.
It is also true that the price has already hit the conservative objective for wave C’s end at the Fib. 0.618 extension of wave A, or 154.20, therefore it’s possible that the price has already unfolded to its limit.
Furthermore, the Relative Strength Index (RSI) indicates that optimistic traders with a medium-term vision should refrain from increasing their long bets because it is well into overbought territory. When the RSI leaves overbought, it could indicate that the USD/JPY is retreating.
For supporters of the USD/JPY pair, it is crucial that the price itself keeps rising because as long as it does, the uptrend is probably going to continue.