Red lines- bearish RSI Divergence
Blue line- support trend line
USDJPY is trading around 150.75 after making a new low today at 150.07. Price touched the blue upward sloping trend line that connects 4 price lows. The 150 level is important support. Price continues making higher highs and higher lows and technically trend remains bullish. As we mentioned in our previous post, USDJPY is very likely to continue lower as there are several signs of weakness. Confirmation of a trend change will come with a break below the last lower high at 149.21. A break below the blue support trend line will increase chances of this move lower happening. Bulls continue to have the upper hand and only one negative day is not enough for a trend change. Bears need to put pressure on the Dollar if they want to change the trend.
