22.07.202222:14 Forex Analysis & Reviews: Technical bearish signal in USDJPY.

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Red lines- bearish divergence

Green line -support trend line

Yesterday USDJPY broke below the key wedge pattern support at 137.90 and provided us with the first bearish signal after a long time. We warned several times before with our analysis that although technically trend remained bullish, the signs of a weakening up trend were there and we should have expected a pull back. I know believe we are the beginning of this pull back. The combination of the bearish RSI divergence with the break of the green trend line provided us with a bearish signal. So far price has lost nearly 200 pips and we expect to see more downside. We are bearish USDJPY as long as price is below 139.

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