USD/JPY Forex Signal: Fade 156.50 as RSI Diverges Bearish
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USD/JPY's rally into the 156.13/50 resistance band coincides with a bearish RSI divergence on the daily chart, a classic exhaustion signal after the Fed's hawkish hike widened the US-Japan yield gap. This zone has repeatedly capped upside attempts, making it a high-probability fade area for short-term forex signals traders ahead of Japan's CPI print and the BoJ decision.
Trade Setup: Entry 156.10 (short) | Stop Loss 156.85 (above resistance cluster) | Take Profit 155.00 | Risk/Reward approximately 1:1.5.
A confirmed break below 155.45 would validate the divergence signal and open the door to extending shorts toward 154.20, but a close above 156.85 invalidates the setup entirely.