FX.co ★ New high for USDJPY, new bearish divergence in the RSI.

Red lines- bullish channel

Black line- bearish RSI divergence

Technically trend remains bullish for USDJPY as long as price continues making higher highs and higher lows. Price is still inside the bullish channel since mid August. The RSI has made another lower high providing a new bearish divergence. The RSI is warning us that the rise is weakening and a major pull back is imminent. Bulls need to be cautious and protect their gains. The Daily chart of USDJPY justifies an important pull back.