The USD/JPY pair rose again during the day on Wednesday as we continue to slice to the upside. This is a market that is overbought though, and as a result I’m waiting to see a pullback in order to get involved. Buying up at these high levels would be chasing the trade, and that’s probably the most dangerous way to trade the markets. I obviously would not sell this pair, but at this point in time I can’t buy it either. I’m just waiting for some type of supported pullback in order to get involved.
USD/JPY daily chart, November 24, 2016