The only reasonable way to profit from overbought/oversold oscillators (like RSI) is to use them as a trend continuation indicator, never as a trend reversal tool! For example, In an uptrend : buy (or add to position) when RSI goes below 30 and then ...

Dragon Riders GBP/JPY

Shorting GBP/JPY at 142.11, 18 pip stop.

Dragon Riders GBP/JPY

The Yen's breakout (see my post above). Nikkei 225 closed higher too, but not that much.

Dragon Riders GBP/JPY

The problem with "overbought" financial instruments is that they can remain overbought for a long, long, long time.

Dragon Riders GBP/JPY

The breakout on the Yen is lifting GBP/JPY (see previous USD/JPY chart and this one).

Dragon Riders GBP/JPY

We now have a potential breakout in progress on the 1-min chart I posted earlier. Never underestimate these smaller and seemingly insignificant time frames, they can signal trend reversals long before they appear on the higher time frames.

Dragon Riders GBP/JPY

What April's high exactly, I don't see any?

Dragon Riders GBP/JPY

As a side note the Yen is trapped inside a 5-min descending channel at the moment.

Dragon Riders GBP/JPY

This is precisely the "down bit" we are interested in, the uptrend will then take care of itself

Dragon Riders GBP/JPY

Yeah I know, I know. The Yen is very sneaky during the Asian session, it moves very very slowly, under the radar, 7 pips here, 4 pips there, and the next thing you know you are down 60 pips or more with all these small moves.

Dragon Riders GBP/JPY

That much is true, this lazy mule won't move until London.

Dragon Riders GBP/JPY

Some kind of ascending channel on the 1-min chart.

Dragon Riders GBP/JPY

Still waiting for that close below 141.40 to go short?

Dragon Riders GBP/JPY

Stopped out, minus 20 pips. That breakout from a H&S was real after all, and it did reach the expected target, according to the measured move principle. Now the last possible stop before (the expected) reversal is 142.10 So far no serious ...

Dragon Riders GBP/JPY

It's easy for you guys to wait for London, you are in Europe. But for us US East Coast traders it's quite another story, it's very very AM (4 AM here when London opens).

Dragon Riders GBP/JPY

I am short GBP/JPY at 141.71, 20 pip stop. Let's go Dragon.

Dragon Riders GBP/JPY

Bank Of Japan Summary of Opinions in 30 minutes (7:50 PM EST), no sure if it's going to change anything but we never know.

Dragon Riders GBP/JPY

Baby bulls, probably I still believe GBP/JPY will drop to 141 before going up.

Dragon Riders GBP/JPY

GBP/JPY is now testing the neckline, after a not-so-convincing breakout. It will probably try to break Friday's high (141.90). However, a second pullback to the neckline would render the breakout suspicious.

Dragon Riders GBP/JPY