Green lines- wedge pattern
Blue lines- bearish RSI divergence
USDJPY is trading around 149.45. Technically trend remains bullish as price continues making higher highs and higher lows. Price has formed a wedge pattern and the RSI is forming bearish divergence patterns. The recent higher high in price was not followed by higher highs in the RSI. Is the trend approaching its end? Most probably yes and that is why traders need to be very cautious. We believe that under current market conditions the upside for USDJPY is limited. At current levels we prefer to be neutral if not bearish. Support is found at 148.50 and a break below this level would be an important sign of weakness. The chances for a trend reversal have increased. USDJPY justifies a pull back towards 145-146.
