RSI

The RSI is very similar to the money flow index only it does not incorperate volume into its calculation.

It's a momentum indicator which is very powerful in identifying breakouts and trend reversals, sometimes even before the action even happens.
Yes it is a confirmation tool, but it's also a crystal ball in many cases.

We can use trendlines also to identify what may happen in the near future.

The last couple of days have shown a consistent downward trend with the RSI despite the price remaining quite high
The RSI didn't lie and the fun ended early yesterday morning for the Yen, shedding almost 100 ticks.

Notice the pink resistance line above the RSI having broken just before midnight signalling a possible reversal, then a higher high at midnight giving us a new support line formation then this morning at around 09:00 confirming the upward move.

Again, a good solid tool that if used properly can keep you out of bad trades and into the good ones

Next we will take a quick look at the Pivots