The USDJPY is positively correlated with equities and traders should watch for equities and oil if trade this pair. Nikkei during Asia, DAX during Europe and SP500 during US session have an impact on this pair. Equities were bullish this morning and we saw UJ spiking up above 113.00.
Technically USDJPY has spiked above the channel making inverse head and shoulders pattern which is seen as a bullish sign. You can see a big inverse H & S pattern with EMA 89 and 38.2 making a confluence zone that is 112.35-50. However 112.75 is also important as it marks a shallow retracement and previous mini right shoulder ( watch the chart to the left). So the price may also spike up from this point here towards 113.30 and 114.00. If we see a breakout above 114.05 next stop is 115.00-20 were historical sellers are waiting.
The analysis and the article presents Nenad's opinion. Remember, financial trading is highly speculative & may lead to the loss of your funds. Proper risk management is the Holy Grail of trading.
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