USD/JPY outlook

FX:USDJPY   U.S. Dollar/Japanese Yen
29 0 1
USD/JPY             is definitely in an upward trend and it is holding well above 101.30 levels. This level has been tested many times in the past (Blue arrows) which makes this level a major support/resistance level. Looking at the wedge pattern, USD/JPY             should technically retrace at the Red line above. The RSI is also signaling a overbought condition.

I have started selling this pair at 107.323 with a small portion and I will increase the lot size as soon as I receive further clues. My stop loss is set at 108.392 and limit at 104.033. Please note, this is a short term position (couple of weeks perhaps). As mentioned above, the long term trend is upwards and I will be looking to go long when I see it taking support near the green line of the wedge pattern.