The trend in USD/JPY remains bullish but very choppy. Price is making higher highs and higher lows but I expect a trend reversal here to the downside. There are important divergence signals implying that the uptrend is fragile and could reverse at any time.
Blue line - divergence signal
USD/JPY is trading above the Ichimoku cloud on the 4-hour chart and inside the blue bullish channel. The RSI is providing us with a bearish divergence signal that is a big warning for bulls. A break below the Ichimoku cloud and the lower channel boundary will be a sell signal and trend change confirmation.
