USDJPY is in a strong upward move for a fourth consecutive week and has already reached 124 price level. Price is now challenging the 2015 highs. If bulls manage to capture 125-126 and stay above it with price making higher highs and higher lows, we should expect an explosive move next for the pair.
Blue line- horizontal resistance/neckline
USDJPY has formed an inverted head and shoulders pattern. Price is now approaching the 2015 highs where we find the long-term horizontal resistance which at the same it is a neckline resistance for an inverted head and shoulders pattern. Price has formed higher lows in 2016 and next in 2021. Price is breaking to new higher highs. USD seems to dominate the Yen and the RSI is making new highs confirming the strength by the bulls. Breaking above the neckline and staying above it, can give USDJPY a major boost towards the head and shoulders target of 170.
