USD/JPY Is Still Expected to Drop

After the pair formed a double top at 114.823 and 114.773, today the pair made another attempt to begin falling with a flag seen on the 30M time frame which had a limit of 65 pips, and there are about 10 more pips until it reaches that limit.

There are two more arguments in favour of the expectation for a serious move to the downside:

– The pair reached the strong resistance seen on the monthly time frame in the zone around 114.000 and a breakout above it will be difficult without a correction.
– On the daily time frame there is a RSI divergence between the highest high at 114.823 and the two highs before it at 113.895 and 114.536.

If this divergence is a valid signal then the pair will reach 106.790.

I, personally, have already opened short positions.