USDJPY Short - Bearish Bat Pattern, Dollar Overbought
As the dollar reaches beyond 97, it is technically entering an overbought zone and may be vulnerable to selling pressure.
So the USDJPY has climbed pretty much through the Asia session and stands above 111.
A bat pattern is on its way to completion where the final point is expected to end in the supply zone around 111.50.
Therefore, if the dollar continues to climb further into the overbought zone while the USDJPY climbs too to complete the bat pattern, we are expecting there's going to be some strong selling pressure.
So the USDJPY has climbed pretty much through the Asia session and stands above 111.
A bat pattern is on its way to completion where the final point is expected to end in the supply zone around 111.50.
Therefore, if the dollar continues to climb further into the overbought zone while the USDJPY climbs too to complete the bat pattern, we are expecting there's going to be some strong selling pressure.
Without any selling pressure, the price is expecting to dive deeper into the supply zone and beyond 111.50.
Let's wait patiently for clearer signs before selling.