One USD/JPY Divergence Reaches Its Limit, Another Is A Signal For A Drop

The RSI divergence signaling for a move to 114.30>>>  that I wrote about yesterday reached its limit and even slightly surpassed it – the pair rose to 114.47.
That is a good thing, because divergences occur quite often and to be able to calculate how far the currency pair will move in either direction is important for opening profitable positions.

On the M5 and M15 time frames there is a new RSI divergence, and although it is only between two highs, I expect it will reach its limit, which for now is at 113.73, as well.

It is possible for the divergence to deepen, which will become clear soon and we’ll have to adapt according to the situation.

For now the question remains whether USD/JPY will continue moving to the upside, in order to reach the limit of the trend channel it broke above, which is 346 pips and that means it will rise toward 117.50. I hope that the technical analysis will provide us with an answer in the following hours.