USD/JPY Best Buy Positions While Trading in Strong Uptrend

In this technical analysis I will explain my current view on USD/JPY and why I suggest a long position. Also, I will explain what good areas are to buy it now that we are in an uptrend.

USD/JPY has been in an uptrend for almost a full week now. This means that buying is becoming more and more tricky. Remember to always try to buy low and sell high.

This means that you wouldn't want to buy at the end of an uptrend. Especially if you look at the RSI right now we see an >> overbought << RSI with a value of over 70.

This is an indicator that you shouldn't want to buy right now, but instead sell. Since I expect the uptrend to continue overall, I do suggest to enter a long position. The only thing we need to figure out is where to buy now.

If we look at the channel, we see that the price is now trading towards the top of the channel. Combined with the overbought RSI I expect that the price will retrace slightly. If it does, this creates a really nice buy opportunity.

You can wait for the price to drop towards the lower part of the channel, but also if we look at horizontal support we see a nice S/R flip that can indicate an area to buy.

After the buy, you can either hold it for a long time to trade the trend all the way to the end, or exit quicker as soon as the price is near the top of the channel again.

I suggest to leave the trade sooner than later, since the whole world and especially the US has lots of uncertainty right now.

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Disclaimer!
This post does not provide financial advice. It is for educational purposes only!