Technical outlook:
USDJPY had printed yet another high around 126.55 mark on Thursday as bulls continue to defy resistance and remain in control. The recent upwing between 125.10 and 126.55 could be the last leg higher before a meaningful pullback unfolds. Bears will be now determined to drag prices below the 125.00 mark to be back in control.
The initial price support is now seen through 125.00-10 mark and a break lower will confirm that a meaningful top is in place and potential trend reversal is on its way. The currency pair is seen is seen to be trading close to 126.45 mark at this point in writing and is expected to reverse lower towards 125.00 levels sooner than expected.
The 4H chart presented here is highlighting a strong bearish divergence on the RSI with the recent swing high registered at 126.55. This is also a potential sigh of reversal and price action should follow through soon. Until that happens, bulls will attempt yet another high above 126.55 mark before finding resistance.
Trading plan:
Potential bearish reversal against 127.50
Good luck!
