FX.co ★ Weekly analysis on USDJPY.

Red lines- bullish channel

Black lines- bearish RSI divergence

USDJPY is making new weekly 2022 highs around 145.65. Short-term trend remains bullish. Price is making new highs but the RSI is not. This is the second higher high in USDJPY that is followed by a lower high in the RSI. This bearish divergence is a sign of weakening up trend. The bearish RSI divergence is a warning to bears. This is not a reversal signal. The chances for a reversal in price have increased dramatically. A move below 140 could signal the top is in and we should then expect a pull back at least towards 131-133.