USDJPY Breaks Support

The Japanese yen recouped some losses after November’s Tokyo CPI rose to 0.5%. A bearish RSI divergence signaled a slowdown in the upward momentum.

A break below 114.90 confirmed weakness in the rally and prompted buyers to close their bets. As the RSI dips into the oversold territory, 114.50 is the immediate support where buying interest could be expected.

Further down, 113.70 would be the second line of defense. A bounce-back above 115.50 would keep the uptrend intact.