- USD/JPY’s 4-hour chart shows head-and-shoulders breakdown.
- The breakdown has opened the doors for sub-108.00 levels.
USD/JPY is operating on slippery grounds, courtesy of Brexit-led risk aversion in the equity markets.
The pair is currently trading at 108.30, representing a 0.16% loss on the day.
The pair may end with a much bigger daily loss, as the 4-hour chart is reporting a head-and-shoulders breakdown.
That pattern represents a transition from the bullish to bearish market and suggests scope for a drop to 107.86 (target as per the measured move method).
The breakdown is also supported by a below-50 reading on the relative strength index (RSI).
The bearish view would be invalidated if the spot finds acceptance above the neckline resistance (former support) at 108.40.
4-hour chart
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Trend: Bearish
Technical levels
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