USDJPY testing a 6 year trend line.

The rally in the USDJPY has been relentless since the break of 106.25 as it has been tracking US bond yields higher as of late. Daily RSI is very overbought and we are testing a multi year trend line from the May 2015 highs. Traders may be trying to “fade” this move, but the risk remains for a break of 109.30 may accelerate a short squeeze to the 110.00 level. A move below the 108.30 level could trigger some near term sell stops.