• USD/JPY continues rising in a short and probably medium-term trend higher. 
• It is overbought according to RSI, however, and could pull-back to support temporarily. 

USD/JPY has been steadily rising since the mid-September 140 lows. It is now in the 149s and appears to have established a short – and probably – medium-term uptrend. Given the premise that “the trend is your friend” the odds favor a continuation higher. 

USD/JPY 4-hour Chart 

The next target lies at 151.09 and the 200-day Simple Moving Average (SMA) (not shown), followed by the major trendline in the 151.80s. 

The pair is overbought, however, according to the Relative Strength Index (RSI) momentum indicator and this means long-holders should not add to their positions as there is a risk of a pull back. 

If RSI exists overbought it will signal a correction, probably to support at either 149.40 or 148.32 if deeper.