USD/JPY Price Analysis: Rises above 110.00, potential head-and-shoulders on 1H

Risk reset in stocks is boding well for USD/JPY.
The pair may be forming a head-and-shoulders pattern on the hourly chart.

Omkar Godbole FXStreet Contributor

USD/JPY has risen above 110.00, tracking the 0.30% rise in the S&P 500 futures.

The bulls are not out of the woods yet and a break above 110.12 is needed to invalidate lower highs setup on the hourly chart and open the doors for re-test of 110.29 (Jan. 16 high).

However, if the resistance at 110.12 holds, the pair may fall back to 109.75, forming a head-and-shoulders pattern.

An hourly close below 109.75 (neckline support) would confirm a bearish reversal and create room for a drop to 109.21 (target as per the measured move method).

Hourly chart

Trend: Bearish below 109.75

Technical levels

USD/JPY

Overview
Today last price	110.05
Today Daily Change	0.24
Today Daily Change %	0.22
Today daily open	109.81

Trends
Daily SMA20	109.32
Daily SMA50	109.13
Daily SMA100	108.61
Daily SMA200	108.55

Levels
Previous Daily High	110.23
Previous Daily Low	109.76
Previous Weekly High	110.3
Previous Weekly Low	109.46
Previous Monthly High	109.8
Previous Monthly Low	108.43
Daily Fibonacci 38.2%	109.94
Daily Fibonacci 61.8%	110.05
Daily Pivot Point S1	109.64
Daily Pivot Point S2	109.47
Daily Pivot Point S3	109.17
Daily Pivot Point R1	110.11
Daily Pivot Point R2	110.4
Daily Pivot Point R3	110.57

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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