FX.co ★ Technical analysis on USDJPY for October 26th, 2023.

Red lines- bearish RSI divergence

blue line- support trend line

Black line- resistance trend line

Blue rectangle- short-term target

USDJPY is trading around 150.40. Short-term trend remains bullish. Price yesterday broke above the black resistance trend line while at the same time respects the blue upward sloping support trend line. USDJPY is approaching our 151.50-152 target area. Despite the new higher high in price, the RSI did not follow. On the contrary USDJPY is providing bearish divergence signals suggesting that the up trend is weakening. Technically bulls remain in full control. However we believe that we are very close to a big pull back.