There are bullish divergence warning signs in the RSI of USDJPY. This is a warning that we could see at least a short-term bounce soon. A bounce towards 107.80 or even 109 is not out of the question.
Red line - resistance
Green line - 2nd resistance
Black lines- triangle pattern (broken downwards)
USDJPY is trading around 105.70. Price has the potential of a bigger bounce towards 108 if price breaks above the red downward sloping trend line resistance and above 106.50. First important test for bulls will be at 107.50 and next at 109. There are bullish divergence signs in the RSI. Although trend remains bearish, these signs should not be taken lightly. Traders should better be cautious and protect their gains. As long as price is below 106.50 we remain bearish.
