Blue lines- bullish channel
USDJPY is trading above 140 continuing inside the upward sloping channel making higher highs and higher lows. This week starts on a positive note but bulls need to be cautious as it might not end that well. The RSI has reached overbought levels and is providing another bearish divergence in the Daily chart. USDJPY justifies a pull back at least towards the lower channel boundary at 139. We continue to believe that the upside potential for USDJPY remains limited and a pull back is imminent.