Technical outlook:
USDJPY has managed to push higher through 115.45-50 levels by the time of writing. The currency pair might be preparing to re-test 115.60 level before reversing lower again. Please note that the structure remains bearish until prices stay below 116.35 level. which is potential resistance. Only a consistent break above 116.35 will bring back bulls in control near term.
USDJPY is seen to be testing the back side of support turned resistance trend line around 115.50 mark. Please note that a bearish reaction is expected here, dragging prices lower. A break below 114.90, short term support, will confirm potential top is in place and that bears are back in control. Intraday resistance is seen around 115.60-70 zone.
USDJPY might e unfolding a conventional Head and Shoulder reversal pattern with Head in place at 116.35, potential Left Shoulder around 115.60-70 zone and Right Shoulder also in place around 115.50-60 zone as marked on the 4H chart here. If correct, bears should be back in control anytime soon and drag prices lower through 112.50 and 109.00 levels going forward.
Trading plan:
Potential drop to 109.00 against 116.35
Good luck!
