USD/JPY Technical Analysis: Forming a bearish Head & Shoulders pattern on hourly chart

Haresh Menghani FXStreet

• The pair struggled to build on overnight goodish rebound and was now seen retracing from an important horizontal resistance, near the 112.65 region.

• The pair now seems to be in the process of forming a bearish Head & Shoulders chart pattern on the 1-hourly chart, with neck-line support near the 111.95 region.

• Meanwhile, neutral technical indicators on hourly/daily charts have failed to support any directional bias, though seemed to have lost positive momentum.

Hence, it would be prudent to wait for a convincing break through the neckline support before •confirming the bearish set-up and positioning for any further near-term downfall.

USD/JPY 1-hourly chart

USD/JPY

Overview:
    Last Price: 112.5
    Daily change: 6.0 pips
    Daily change: 0.0534%
    Daily Open: 112.44
Trends:
    Daily SMA20: 112.96
    Daily SMA50: 112.04
    Daily SMA100: 111.5
    Daily SMA200: 109.84
Levels:
    Daily High: 112.86
    Daily Low: 111.95
    Weekly High: 112.75
    Weekly Low: 111.62
    Monthly High: 113.71
    Monthly Low: 110.38
    Daily Fibonacci 38.2%: 112.3
    Daily Fibonacci 61.8%: 112.51
    Daily Pivot Point S1: 111.98
    Daily Pivot Point S2: 111.51
    Daily Pivot Point S3: 111.07
    Daily Pivot Point R1: 112.88
    Daily Pivot Point R2: 113.33
    Daily Pivot Point R3: 113.79

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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