USD/JPY Climbed with 1000 Pips without a Correction. What Can We Expect?

Despite all the RSI divergences the USD/JPY pair continues rising, and up until now it has risen with 999.300 pips with almost no correction (from 101.190 to the last high at 111.183). The USD is in a very powerful bullish trend and the reason for this is often cited as the election of the new American president, but I think that the expected rate hike in December also has an influence over it.

Whatever the reason, the USD rose immensely, and since 105.050 until the last high the pair has been climbing in a range channel (in red). For the moment the closest target for the move to the downside is the support trendline of that channel.

Considering the RSI divergence between the last two highs on the H1 time frame as well as the immense rally of this pair without any significant correction, I think that the last RSI divergence could reach its limit.

That will be possible, however, only if the pair breaks below the support trendline of the channel and that breakout is confirmed, signaling for the beginning of a more long-term correction.