USDJPY looks like it is forming some kind of a head and shoulders pattern. Whether or not someone calls it a head and shoulders pattern, one thing is certain, the blue upward sloping trend line should be defended by bulls otherwise selling pressures will push USDJPY much lower.
Blue line- neck line support
Support by the blue trend line is found at 114.50. Failure to stay above this level will be a sign of weakness and price will most probably continue lower towards 113.50 where we see the double bottom from January. The 113.50 is major short-term support and a break below it will bring more pressure on price of USDJPY. So far price is forming lower highs and resistance at 116-116.35 remains strong. Bulls will need to break above this area in order to hope for a move higher.
