Inverted Head and Shoulders Pattern on USDJPY
The price of USDJPY looks ready to complete an inverted head and shoulders pattern, which would then likely result in a new upswing towards the last swing high (at 111.600).
In order for the pattern to be completed, the price would have to break out above the Neckline around the 61.8 per cent Fibonacci retracement level at 110.543. Meanwhile, the recent breakout above the 38.2 per cent Fibonacci signifies the strong bullish bias in the short term.
However, bulls looking to enter around the current spot price should place narrow stop losses that do not go beyond the 109.600 support.
Keep in mind that the price action is about to probe the 200-day MA (in orange) and the 50-day MA (in green), which could prompt a temporary reversal over the next several days.
In order for the pattern to be completed, the price would have to break out above the Neckline around the 61.8 per cent Fibonacci retracement level at 110.543. Meanwhile, the recent breakout above the 38.2 per cent Fibonacci signifies the strong bullish bias in the short term.
However, bulls looking to enter around the current spot price should place narrow stop losses that do not go beyond the 109.600 support.
Keep in mind that the price action is about to probe the 200-day MA (in orange) and the 50-day MA (in green), which could prompt a temporary reversal over the next several days.
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