Red lines- bearish divergence
Blue line- resistance
USDJPY is making new higher highs above 136. Trend remains bullish. Price has not broken below the key short-term support we warned yesterday. Price has respected support at 134.90 and is now moving higher. However the RSI is not following price. The RSI is providing us with bearish divergence signals. The bearish divergence is a sign of weakening bullish trend. The chances of a bigger reversal and pull back have increased. Bulls need to be cautious.
