JPYBASKET's RSI Charts Potential Failure Swing Top

Further to our previous article, the JPYBASKET broke out of its flag formation and headed towards the pattern's target. This, as risk-off sentiment dominates markets and safe havens, like the JPY, benefit. However, it is worth noting that the RSI has pushed down from the 80 level (blue rectangle) in a pattern referred to as a RSI failure swing top. The failure swing is usually an indication that price may be correcting i.e. pulling back from its recent impulse move up. Thus, the flag's target may not be met (at least in the near term). However, any decline here may prove to be a low risk entry opportunity, especially if the risk-off sentiment that is permeating through the risk market continues to persist.