USDJPY is trading at 109.75. Price has broken below the key upward sloping trend line support that was respected for more than 6 months. Today's breakdown is a bearish signal and we no longer prefer to be bullish USDJPY. With current price action we prefer to be neutral if not bearish. Price has now stopped making higher highs and higher lows.
Red line -bearish divergence
A few days back we warned traders with our analysis that USDJPY was showing topping signs. We warned traders not to be overoptimistic despite price breaking above 111. The RSI was giving bearish divergence warnings and the upside momentum was weakening. Today we have confirmation of these warnings that trend is changing. Next support area for USDJPY is at 109.
