USD/JPY (daily chart as of August 28, 2013) reached a high of 99.00 on August 23 and formed a small doji right at the short-term downtrend line (bold blue line on the chart), which could be a bearish reversal signal. Right next to the August 23 doji there was another small doji followed by a long bearish candlestick, which strengthened the signal. The pair needs to break down below the important 95.70/80 support region to confirm the bearish signal.
Note that the daily MACD is approaching its downtrend line from below zero, and the RSI is making a potential downtrend line breakout. There are conflicting biases indicated by price action (potentially bearish) and the RSI (potentially bullish). More confirmations should be required for any trading action. Price may trade in a small range between the downtrend line and 95.70/80 before a significant breakout.
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