USD/JPY RSI Divergence, Pullback Potential

11 set

Bears have had ample opportunity to run a big picture breakdown in USD/JPY and given the fundamental backdrop, with the FOMC getting closer to starting a rate cut cycle, that scenario would seem to fit. But sellers have seemingly continued to fail after another bear trap set up last night. At this point, there's pullback potential in the pair as short-term dynamics have retained an oversold feel, and RSI on the four-hour chart has shown divergence which indicates that possibility. This puts the focus back on resistance at levels like 143.45 or 145.00. - js