USD/JPY Technical Analysis: Greenback supported at 109.50 remains vulnerable to further bear incursions

• USD/JPY is potentially forming a bearish head-and-shoulder pattern on the daily time-frame.
• Near-term USD/JPY is  essentially range-bound between 109.40 and 110.25 so a potential rebound in the 110.00 area and a retest of the 100-period simple moving average (M15) can be possible.
• However, USD/JPY remains exposed to further losses and a strong bear breakout below the 109.37-109.47 area would likely confirm the bearish reversal.

USD/JPY 15-minute chart

Spot rate:                  109.69
Relative change:      -0.45%      
High:                         110.24
Low:                          109.47

Trend:                       Bearish below 109.37-109.47 area              

Resistance 1:          110.00-110.21 area, figure, daily 200 SMA
Resistance 2:         110.79 May 22 low
Resistance 3:         111.41 May 21 high

Support 1:              109.37/47 current Thursday’s low, daily 10 SMA
Support 2:              109.20, 50% Fibonacci retracement from May 29-June 6
Support 3:              108.76, daily 50 moving average

USD/JPY daily  

Potential bearish head-and-shoulder formation.