Violet lines- Fibonacci retracements
Black line- support trend line
USDJPY is trading around 136. Short-term trend remains bullish as price continues making higher highs and higher lows. However there are signs that point to a reversal for next week. USDJPY has stopped the rise at the 38% Fibonacci retracement of the entire decline. This is important short-term resistance. So far USDJPY failed to break above this resistance twice. Support is found at the black trend line at 135.55. The RSI has started providing bearish divergence signals. If the bearish divergence signals are combined with a break below the black support trend line, then we could see a deeper pull back towards 132.80-133.20.
