USD/JPY Reversal Risk Builds Near 156.50 Despite Fed Boost
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Despite the fresh push higher driven by the Fed's rate decision, USD/JPY charts are flashing a warning sign. Bearish RSI divergence has emerged as price grinds toward the 156.13/50 resistance zone, suggesting momentum is not confirming the latest highs.
This divergence pattern often precedes short-term pullbacks, making 155.45 the level traders are watching closely as a downside trigger. A break below would validate the weakening momentum thesis and could accelerate profit-taking in long dollar-yen positions.
Until then, the pair remains in a tug-of-war between fundamental dollar strength from the hawkish Fed and technical exhaustion signals building on the charts, keeping both bulls and bears on alert around these key levels.
