USDJPY is in an uptrend but is overbought
The above chart shows daily price action. The USDJPY is in a mark-up phase which is typically defined by a bullish EMA formation. The green 5-day EMA > the orange 13-day EMA > the black 34-day EMA. The RSI(9) is above 50 and indicative of bullish momentum. However, we note that the current reading of the RSI(9) is above 80, which is overbought (blue rectangle). A pullback to normalise the oscillators will be viewed as normal and may provide a “buy the dip in an uptrend” opportunity.
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