13.11.201918:09 Forex Analysis & Reviews: USDJPY bullish trend since 104.70 could come to an end

USDJPY is challenging the lower channel boundary of the up trend that it started back in August. Price has been making higher highs and higher lows but on a daily basis we see some bearish divergence warning signs by the RSI.

Green lines - bullish channel

Black line- bearish divergence

USDJPY is challenging the lower channel boundary. Combined with the fact we have bearish divergence signs on a daily basis, a break below 108.50-108 on a weekly basis would be a bearish sign. Support is found at 108.50 but on a weekly basis 108 is more important. With RSI getting rejected once again at the black resistance trend line, the chances for a move lower have increased.

Black line- bearish divergence

Bearish divergence signs we have also in the 4 hour chart confirming our expectations for a pull back. Support is at 108.50 and next at 108. Resistance is at 109.15-109.30. As long as price is below that level i prefer to be bearish. Breaking above this level will open the way for a move above 110.