USDJPY HEAD & SHOULDERS PATTERN FORMING
We have 3 lines of resistance that could form the peak of the shoulder:
1. Fib 0.764 - 123.52
2. Trendline 1: from 123.80 and up
3. Trendline 2 - max 124.40
I believe one of these points will provide a reversal point, then if the move down breaks the neckline a potential move back to Fib 0.50 could be on the cards.
I will wait for a neckline break before going short.
One thing to note, Trendline 1, 2 and the neckline form an apex around 124.20 which could be significant.
1. Fib 0.764 - 123.52
2. Trendline 1: from 123.80 and up
3. Trendline 2 - max 124.40
I believe one of these points will provide a reversal point, then if the move down breaks the neckline a potential move back to Fib 0.50 could be on the cards.
I will wait for a neckline break before going short.
One thing to note, Trendline 1, 2 and the neckline form an apex around 124.20 which could be significant.
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