FX.co ★ Is USDJPY forming a blow off top?

Red lines- bullish channel

Black lines- bearish RSI divergence

USDJPY is trading around 144-145. Volatility has increased dramatically over the last couple of weeks with price making swings of 500 pips. Although technically trend remains bullish making higher highs and higher lows, we have significant warning signals by the RSI. USDJPY has broken out of the upper bullish channel boundary. This could be a blow off top if the warning from the RSI comes true. The RSI for another week and despite the new highs highs in price, is making a lower high providing another bearish divergence. This is not the time to be bullish USDJPY. At least bulls will need to be very cautious and protect their gains. USDJPY has formed a parabolic rise and usually parabolic rises are followed by steep declines. Bulls need to be very cautious.