Is the USD/JPY Rate Outlook Susceptible to RSI Sell Signal?
If the Relative Strength Index (RSI) drops below 70, the near-term outlook for the USD/JPY looks bearish. This oscillator offers a textbook sell signal. In fact, a move below 70 will probably trigger a near-term correction in the pair. But the question remains: is it a sell signal? Or is it an opportunity for bulls to take advantage of?
A weekly candlestick upside whipsaw is a sign of an upcoming reversal of the uptrend and the beginning of a deep bearish correction. However, the technical outlook of the weekly chart setup only shows a potential rebound. RSI oscillator is overbought, while other indicators indicate that a bearish continuation flag is about to be formed.
If you’re looking for a good place to enter trades, you can use the STC USD/JPY rate indicator. This indicator is useful for determining if a currency pair is overbought or oversold. It generates signals faster than MACD and takes into account moving averages and time cycles. It’s best used in combination with other indicators to provide the best overall picture of a currency pair’s price.
MACD crosses signal line
The market’s momentum oscillator, or MACD, crossed the signal line on Wednesday. This crossover was followed by a sharp decline on Thursday, with the USD/JPY finishing lower in all three sessions after the crossover. Traders should watch for further losses as the divergence in the MACD indicator will continue to increase. On Wednesday, the Relative Strength Index (RSI) crossed the midpoint, indicating a potential for further slippage. Lastly, the Average True Range (ATR) has only modestly recovered from its low of January 3 and is pointing lower. The 21-day MA crossed the 50-day MA in succession on Wednesday and Thursday.
STC crosses signal line
A move below 70 on the Relative Strength Index (RSI) is a textbook sell signal for USD/JPY. This may be the beginning of a short-term correction in USD/JPY. However, the diverging paths of the BoJ and FOMC suggest that a pullback is imminent. Furthermore, the RSI’s falling momentum will likely provide a textbook sell signal as well.