USD/TRY Price Analysis: Doji, overbought RSI teases sellers at yearly top near 16.50

• USD/TRY remains pressured around yearly high, probes five-day uptrend.
• Overbought RSI, bearish candlestick formation favor pullback moves.
• Three-week-old bullish channel keeps buyers hopeful, 10-DMA adds strength to the key support.

USD/TRY struggles to keep bulls on the table after the previous day’s rejection from the yearly peak. That said, the Turkish lira (TRY) pair stays pressured around 16.35 by the press time of early Friday morning in Europe.

The Turkish lira pair’s pullback from 2022’s top the previous day portrays the quote’s U-turn from the resistance line of a three-week-old rising channel.

In doing so, the USD/TRY also closed without major moves, which in turn portrayed the bearish Doji candlestick on the multi-day high. Adding to the bearish bias is the overbought RSI condition.

Hence, the USD/TRY prices are likely to witness a pullback towards the 16.00 threshold. Though, a convergence of the 10-DMA and support line of the aforementioned channel restricts the pairs’ further downside.

Should the quote break the 16.00 support, the odds of its slump towards refreshing the weekly low near 15.68 can’t be ruled out.

Alternatively, the pair’s further upside needs to cross the latest high surrounding 16.50 to reject the bearish candlestick formation.

Even so, the stated channel’s upper line near 16.55 will act as an extra filter to the north for the pair.

USD/TRY: Daily chart

Trend: Pullback expected