USD/JPY Follows Through on Divergence Warning

Daily

Chart Prepared by Jamie Saettele, CMT

DailyFX Trading Guides and Forecasts

-The major topping pattern is still in play (target from the head and shoulders top is near 105) but a move higher from now wouldn’t surprise given pronounced divergence with daily RSI and the fact that last week’s low was at a well-defined price level (the 2008 high…among other things…read more here). Even a rally into the 118.00s could still be classified as a bear market rally.

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