FX.co ★ Technical analysis on USDJPY for October 2nd, 2023.

Green lines- wedge pattern

Blue line- bearish RSI divergence

USDJPY is trading around 149.83 making new higher highs. Trend remains bullish as price continues trading inside the green wedge pattern with higher lows and higher highs. This week starts on a positive note after challenging last week the lower wedge pattern boundary. As we said above, technically we remain in a bullish trend. No reversal sign. However the new higher high today was not followed by a higher high in the RSI. The RSI formed another lower high confirming the bearish divergence. This lower high increases the chances of a reversal. This lower high suggests that the uptrend is weakening. The upside potential is limited. Bulls need to be very cautious. A break below the lower wedge boundary would be a bearish signal.