USD/JPY Price Analysis: Trims losses, potential head-and-shoulders on hourly chart
|- USD/JPY looks to be creating a head-and-shoulders pattern on the hourly chart.
- A break below 109.80 would confirm breakdown and open the doors for a pullback to deeper support levels.
USD/JPY is currently trading at 109.92, representing marginal losses on the day, having hit a low of 109.81 a few hours ago.
The minor recovery from session lows could be short-lived, as the hourly chart relative strength index is reporting a bearish divergence and the 4-hour chart RSI has rolled over from overbought levels in favor of correction.
The pair, therefore, risks falling toward 109.80. That would mark the completion of a head-and-shoulders (H&S) pattern on the hourly chart.
An hourly close below the neckline support at 109.80 would confirm an H&S breakdown and open the doors to 110.60 (target as per the measured move method).
On the higher side, the session high of 110.02 is the level to beat for the bulls. A sustained move higher could cause more buyers to join the market, yielding a re-tet of the Jan. 17 high of 110.29.
Hourly chart
Trend: Bearish
Technical levels
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.