Red lines- Bearish RSI divergence
Blue rectangle- key support (sell if broken)
Green line- support trend line
USDJPY remains in a bullish trend making higher highs and higher lows. Our previous analysis warned once again traders that the bearish RSI divergence is an important warning for the bullish trend. However this is only a warning and not a reversal signal. USDJPY made a new 2022 high this week but the RSI formed another lower high. Support is found at 136. A break below this level will be a sign of weakness and will increase chances of breaking below the blue rectangle support. If the blue rectangle support area at 134.60-134.70 is broken, I will turn bearish as this would be my bearish reversal signal. The chances of this happening have increased.
