USD/JPY: RSI max(Bearish)

University has been taking up more time that I keep expecting which is creating constant frustrations for me in order to find time to look at market movement. But now I have a lil bit of freeedon so gotta have a look at the markets!
The USD/JPY market is looking juicy, an opening of a short position could be a motive and this is why I believe so.
We have as expected seen the growth expected after the bottoming out in the stoch RSI in early October with the market bouncing off the high 111 resistance zone. But now we have reached the top of the stoch RSI where we have seen a drawback in previous months at the 99/100 region emphasising the uncertainty for further gains without any dip.

I am looking at not much further gains for the next week or so at least, a short is looking enticing, with the dip to the bottom of 113 looking likely which is where I reckon the next resistance zone is going to be. Yet depending on how much the dip effects investor confidence we may see further drawback with mid 112 very realistic for the future weeks.

Furthermore the top of the candle illustrates the testing of the next zone, the upper bounds of 113. But the inability for the market to break through this position highlights how short-term bulls will need to be careful.
I reckon entry here is pretty solid, with a short position holding till at least 113 is hit, at this point I would, depending on the RSI position think of taking a percentage of my profit out before letting it fall further if it does happen.

But this is all just my opinion, take care,
peace.

The Naive Trader.


TradingView, 2018.