- USD/JPY has created an inverse head-and-shoulders pattern.
- The daily chart also shows a bearish channel breakout.
USD/JPY pair is currently trading at 108.40, having hit a high of 108.59 earlier today. The pullback from session highs could be associated with the risk-off tone in the Asian equity markets.
On the daily chart, the currency pair seems to have created an inverse head-and-shoulders pattern with the neckline resistance at 108.44. A daily close above that level would confirm the breakout and create room for a rally to 110.10 (target as per the measured move method).
An inverse head-and-shoulders breakout looks likely as the path of least resistance is to the higher side – the pair confirmed a bearish channel breakout on Friday with a 0.60% rise.
Daily chart
-636981523690280186.png)
Trend: Bullish above 108.44.
Pivot points
Share
