Monday, November 14, 2016

USD/JPY Could Fall to 107.00 – 106.91

The upwards USD/JPY trend continued during the last day of the previous week and in the beginning of this one, and the pair reached 108.156.

It is obvious that the move to the upside is very powerful, something made clear by the two strong pinbars on the daily time frame.

Despite that we can see RSI divergence on the 15-minute time frame between the last three highs, which is a signal that we can expect a corrective move to the downside towards 107.00 – 106.91.

It is also obvious that for now the bulls don’t want to give up and are trying to lengthen their control over the move to the upside, which will continue until the European session ends. If the divergence is a valid signal then the move to the downside will possibly take place during the American session.

On the other hand, if the pair continues rising I think its next target will be 108.50.