Potential head and shoulders setting up on USDJPY

USDJPY

Daily

There is a potential head and shoulders (H&S) pattern setting up on the daily USDJPY. It’s interesting to note that the green 3-day EMA is looking to cross below the black 5-day EMA (death-cross). If this happens it is likely that the right shoulder (RS) will be charted. If a death-cross occurs look for the RSI(9) to dip below 50 as this will be indicative that bearish momentum is present. Traditional technical analysis puts the target around 107.00 if indeed the H&S completes, which is close to the September lows.

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