and how would you know that? just based on the RSI? it's been 2 days am waiting for this pullback, thought it would happen yesterday as it is modest compare to the bullish reversal. all studies flashing major divergence and yet what does the pair do? goes a little down and then back up right where it started! gbpjpy moved back up a lot more. so studies alone is not saying much. therefore i have to ask you: do you have order flow information?
yen has been weakening on the back of good global growth data last week and this week. Also plans for huge japanese pensions to begin buying foreign assets has played a part in weakening it as well. Positioning in yen right now is going to make it hard for it to continue weakening much more, especially without further ques from the BOJ regarding additional stimulus. Thats why I am thinking Yen will gain some ground back over the next few days.