Expectations for the USD/JPY pair

Considering the almost monthly decline in the pair USD/JPY, it turned out to be significantly oversold and returned to the global downlink, which can be traced from the beginning of 2016. Considering the history of the last three months, the formation of a reversal pattern on the daily timeframe and the reluctance of this pair to return to the channel, one should expect the formation of a correction movement from the level of 111.50-70. This will indicate the formation of the second shoulder of the “head and shoulders”  figure.

The development of this upward movement will be limited to the levels 112.40 and 113.00-10. After this, one should expect a resumption of the downtrend with a repeated support test: 111.30-00.

Recommended for reading: EUR/USD today: the pair is in uncertainty.

Anton Hanzenko