29.07.202016:33 Forex Analysis & Reviews: Short-term bounce imminent in USDJPY

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USDJPY is in a bearish trend making lower lows and lower highs. However there are some indications that a short-term relief bounce could come by the end of the week, so bears need to be cautious and not too greedy.

Green line - bullish divergence

As we see in the above 4 hour chart, the RSI is showing bullish divergence signs. USDJPY justifies a bounce towards the 38% Fibonacci retracement and the 105.75 area. Trend is bearish but with the end of the week close by, we could see some profit taking by bears to lock in profits and this could push price higher. I do not expect to see a major trend change but only a relief bounce.

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