USD/JPY - Breakthrough

We saw the currency pair break through the resistance fairly easily, with much less drawback than I originally expected. Buy volume still seems very solid with confidence in the Dollar clearly holding well, which is surprising as I thought markets would react to this RSI position with a drawback at least for a short while, maybe even holding a horizontal position for this week or so.

However clearly not, RSI is still cooking, almost hitting the 100 mark on the indicator, showing that the market is looking strongly overbought for the current period.
What is interesting though, is that even with the currency pair being strongly overbought just looking at resistance levels, I don't expect much dip until we reach the mid 114 level. This would be impressive, highlighting just how strong the US dollar is right now, as investor confidence has clearly grown over the last few months.
I believe that it will hold at the level before much further gains. this bullish rally needs some time to hold and find a steady level as we are currently experiencing the highest value of the US Dollar for this whole year. I will update once we see any further progress or drawback within this ever eventful market.

Peace.


The Naive Trader.



TradingView, 2018.