Yesterday USDJPY broke below the key wedge pattern support at 137.90 and provided us with the first bearish signal after a long time. We warned several times before with our analysis that although technically trend remained bullish, the signs of a weakening up trend were there and we should have expected a pull back. I know believe we are the beginning of this pull back.
Green line -support trend line
Yesterday USDJPY broke below the key wedge pattern support at 137.90 and provided us with the first bearish signal after a long time. We warned several times before with our analysis that although technically trend remained bullish, the signs of a weakening up trend were there and we should have expected a pull back. I know believe we are the beginning of this pull back. The combination of the bearish RSI divergence with the break of the green trend line provided us with a bearish signal. So far price has lost nearly 200 pips and we expect to see more downside. We are bearish USDJPY as long as price is below 139.