USDJPY is trading above 130 and continues making higher highs and higher lows. Price is inside a bullish channel and so far the boundaries are being respected. Bulls are in full control of the trend and we have not seen yet any sign of a reversal.
As we mentioned in previous posts, USDJPY has made a major break out according to the Inverted head and shoulders pattern. Short-term trend remains bullish as long as price is above 129.80. Failure to stay above this level will be the first bearish signal and the start of a pull back. First pull back target area would be towards 129 and 128. The RSI has already provided us with some bearish divergence signals. These signals are only warnings. Bulls need to be cautious as it seems that the bullish momentum is weakening.
