USD/JPY Bearish Divergence Flags Resistance Rejection Risk
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USD/JPY is testing a key resistance ceiling while the RSI prints a bearish divergence, with price making higher highs as the oscillator forms lower highs. This divergence pattern often precedes short-term reversals or consolidation phases.
Broader market backdrop reinforces caution for dollar bulls: underlying weakness beneath major equity indices, despite headline records, suggests fragile risk sentiment that could spill into currency flows and cap further USD/JPY upside.
A break below the nearest support trendline would confirm the divergence signal, opening a path toward the next Fibonacci retracement zone before buyers can regroup.