Title
USDJPY H4 | Bearish Divergence
Type
Bearish Reversal
Preference:
Price has just reacted off our pivot point of 139.66 which is a pullack resistance level. A reverse form here, price could fall to 1st support at 138.81 which is an overlap support level.
Alternative scenario:
However, if price breaks above the pivot, it could rally to 1st resistance at 140.691 which is another pullback resistance level
Additionally, The Relative Strength Index (RSI) is also displaying bearish divergence versus price, suggesting that a reversal might occur soon.
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Desmond Leong runs an award-winning research firm (The Technical Analyst finalists 2018/19/20 for Best FX and Equity Research) advising banks, brokers and hedge funds. Backed by a team of CFA, CMT, CFTe accredited traders, he takes on the market daily using a combination of technical and fundamental analysis.