Forex: USD/JPY above 87, most extreme overbought level since 2001

FXstreet.com (Barcelona) - USDJPY is currently at 87.18, slightly off recent session and 29-month highs at 87.29 as U.S. House just passed the Senate's Bill on "fiscal cliff," and Tokyo remains closed over holidays. The pair reads its highest overbought level on daily RSI 14 since year 2001, around the 84 figure.

The pair has broken to the upside following a massive long term inverted head and shoulders pattern, almost +10% higher since general elections in Japan were called back in November. "The 61.8% retracement of the fall from 94.95 to 75.60 comes in at 87.55 and this level should be respected." says FXWW founder Sean Lee.

Immediate support to the downside for USDJPY lies at Friday's highs 86.65, followed by Monday's lows at 85.67, and Dec 24 highs at 84.90. Closest resistance to the upside shows at recent session and 29-month highs 87.29, followed by May 05 lows at 88.05, and Feb 04 lows at 88.53.