USD/JPY getting a bit over bought

USD/JPY seems to be moving in a nice upward trend but it is getting a bit over bought and sooner or later we might see USD/JPY taking a dip to have some retracement. The traders will look to aim buying USD/JPY around those retracement levels and first good retracement level can be seen around 77.50 level which seems a good long term support as well. In case the USD/JPY extends its retracement below 77.50 level, it will look to target 76.85 level support and break below that level will pause the buying of USD/JPY as traders will then hold back to let USD/JPY stable itself in sideways trend for a couple of days before continuing upward trend.

Looking at the moving averages used in daily charts, it can be seen that currently USD/JPY is comfortably above all the moving averages and in case of retracement it will primarily look to touch short term moving average around 77.80 level which is basically what short term traders look for and then the dip will look to target 77.00 level around which long term and short term moving average seems to cross each other. The RSI is around 68 which on the higher side and will push USD/JPY downward for a retrace.

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