USD/JPY: 1-hour
Looks like USD/JPY is getting tired from all that climbing! The pair has formed a head and shoulders pattern on its 1-hour forex time frame, suggesting that a reversal might take place. USD/JPY has yet to break below the neckline of the formation before confirming the potential downtrend, which could last by as much as a hundred pips. Stochastic is still moving lower so there seems to be enough selling pressure to trigger a breakdown but, if a bounce takes place, price could climb back up to its previous highs around the 104.30 area or beyond.
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