USD/JPY: Impressive Drawback

Since my last post the USD/JPY has seen drastic change which is fascinating as ever. I didn't think we would see a drawback till the mid 114 level I must admit even though the stoch RSI was heavy on the overbought level but anyway, live and learn!

So now we are again in a precarious position, looking just at technical, we have been seeing the currency pair in a solid upward trend testing the upper levels of but rebounding off the upper and lower channels through the last few months. Now once again the lower trend line looks to be tested, the reason why I think it could be tested is because the lower bounds of the Bollinger Bands haven't been touched and the market still looks in a downward progress.
Yet countering this we are reaching the point in the RSI where its the bottom of the oversold section, so a rebound is expected. The opposite was seen when we hit the top in terms of what was seen in recent times over the last few months and that I why I don't think we will break the lower resistant barrier, looking around the lower 112 mark.

Peace.

The Naive Trader