USDJPY reached as high as 114.99 this week making a new weekly high. However bulls were unable to hold price near that new high. The week is about to end with prices lower than last week and near the lower end. This has formed a bearish hammer in the weekly chart.
Unless there is a big surprise by bulls by the end of today's session, the weekly candle will be a bearish one. Usually this kind of candlestick patterns are seen at major reversal points. It will not be a surprise if next week price continues its downward momentum from this week and pushes below 112.75. The RSI is turning lower from overbought levels and after providing a bearish divergence, as this week the high was lower, despite the price making new higher highs. At current levels I prefer to be neutral if not bearish USDJPY.
