As expected USDJPY is breaking to new higher highs above 111.25. Trend remains bullish as price continues to respect the support at 110 and as long as price is making higher highs and higher lows. However today with a new higher high in price we also got a first warning from the RSI. The RSI has provided us with a bearish divergence.
Blue line - support
USDJPY has support at recent low of 110.50 and at the blue trend line support at 110.15. The RSI did not make a new higher high providing a bearish divergence. This is not a reversal or topping signal. This is a warning signal that the up trend is weakening. This does not mean that the up trend has finished. For the reversal to be confirmed price will need to break below the latest short-term low. In this case this level is at 110.50.
