Red lines -bearish divergence
Blue line- resistance trend line
USDJPY made a new higher high for 2022 as expected above 137. The new high was short-lived and price has turned lower again towards 135.85. In our previous analysis we warned traders that we were expecting new highs and a reversal, specially if the new higher high was accompanied with a new bearish divergence in the RSI. Despite the new high, the RSI made a lower high, confirming the weakening of the up trend. A major pull back is justified from current levels and bulls need to be very cautious.