Is the market overbought? Failures above topside trend line says it may be.
The USDJPY moved above a trend line on the hourly chart that started back on June 9th. The pair stalled against the line (at red circle 3), broke above line on Monday and failed. Today, the line was broken as well and failed again. Stay below that trend line now (at 113.52 now) and the bias is more bearish (at least for a further correction). The failures on the breaks suggest that the market may be getting a little overbought. Buyers are finding the pushes more difficult to be sustained.
What would make shorts happy from here?
Stay below 113.52 and then get below the close from yesterday at 113.27. A more below that level and traders will be looking toward the 113.00 area ( lower trend line). That trend line should stall the fall on a test today.
US yields are steady at unchanged to down about 1 bp across the curve.
US stocks are turning lower. The major indices are trading near lows.
