Blue lines- bullish channel
Red lines- consolidation
Usdjpy is making new 2022 highs. As expected by our previous analysis, price has broken out of the trending range it was in and is making a new higher highs above the 140 price level. Price is inside the short-term bullish Channel. The RSI in the 4-Hour chart is at overbought levels. USD JPY justifies a pull back towards 139 price level. The lower Channel boundary is found at that 139 price level. This is important support for the short-term bullish trend. If the short-term bullish channel is broken, then we should expect price to move towards 137. The new weekly higher high for 2022 is not accompanied by a new higher High by the RSI. On a weekly basis the RSI continues providing a bearish divergence. Traders need to be very cautious as we could very well see and major high being formed soon.
