FX.co ★ Bullish momentum in USDJPY is weakening.

USDJPY reached important resistance yesterday close to 111. Price made new higher highs but the RSI provided us with a bearish divergence. This is the first warning after some time. Price today is turning lower. Trend remains bullish as price continues making higher highs and higher lows.

Blue line- support trend line

As long as price holds above the blue upward sloping support trend line, trend will remain bullish. A break below the blue support trend line at 109.90 combined with the bearish divergence in the RSI, will imply that a strong pull back is imminent. So far there is no trend change confirmation. Only warning signs.