Early in the American session, the Japanese yen is trading at around 135.05. This represents the psychological level and a zone of strong resistance. In case the USD/JPY pair continues to rise, it could face the second daily resistance located at 135.27.
According to the daily chart, we can see that the yen is overbought. In the 4-hour chart, we can see that it has been overbought since February 15 and is giving a negative signal. A technical correction is likely to occur in the next few hours and the instrument could reach the 21 SMA located at 133.40.
In view of the fact that the Japanese Yen is located in the overbought zone, it is expected that in the next few hours, there will be a fall as part of a technical correction. Therefore, we could sell at current price levels at around 135.05 with targets at 134.37 and 133.40 (21 SMA).
