Bearish RSI Divergence Flags USD/JPY Reversal Risk
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Despite USD/JPY grinding higher into the 156.13/50 zone, the Relative Strength Index is failing to confirm the move, printing lower highs even as price posts higher highs. This classic bearish divergence signals fading upside momentum.
The 155.45 level stands out as the key downside trigger technically. A break below this threshold would validate the divergence signal and could accelerate selling pressure, particularly if broader risk sentiment shifts.
Until 155.45 gives way, the divergence remains a warning rather than a confirmed reversal. Traders should monitor daily closes and momentum indicators for confirmation before positioning against the prevailing uptrend.