USD/JPY Definitive Divergence Hinting Possible Bearish Move

2 min read
Davinwu

Davinwu

Author

Dear Traders,

The USDJPY has formed a definitive bearish divergence at resistance. Bearish divergence happens when price makes a higher high while the oscillator makes a lower high.

We might see a rejection from 112.00-10 POC zone. Targets are 111.44 and 111.22 with a possible continuation move on the 4h close below 111.20. Have in mind that price needs to stay below 112.80 for divergence to remain stable.

A move below 111.10 would signal additional bearish strength and a possibility for a retest of 110.85, D L5 and previous swing low.

We may see an extended target 110.65, W L5.

The analysis has been done with the CAMMACD.MTF template.
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Many green pips,
Davin Wu aka AmbitionFX
Elite CurrenSea

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