BluetonaFX - USDJPY Potential Head & Shoulders Opportunity
Hi Traders!
There is a potential head-and-shoulders pattern forming on the USDJPY 1D chart. As we predicted in our previous analysis of the NFP announcement, USDJPY is now in a potential reversal of the bullish trend we have seen in the past couple of months. The potential right shoulder and neckline have been drawn on the chart, along with the already-formed left shoulder and head. We expect a slowdown to the bearish momentum, followed by a consolidation period to complete the right shoulder, and then continuation to break and close below the neckline.
A break and close below the neckline will target the support level at 137.915. This is the area where the market broke out to the upside to start the bullish wave, so we could potentially return to this point.
To note, tomorrow we have very important inflation data coming from the US; therefore, if the data is negative, this will put further pressure on the US dollar, and we could see an immediate bearish push to target 137.915.
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Thank you for your support.
BluetonaFX
There is a potential head-and-shoulders pattern forming on the USDJPY 1D chart. As we predicted in our previous analysis of the NFP announcement, USDJPY is now in a potential reversal of the bullish trend we have seen in the past couple of months. The potential right shoulder and neckline have been drawn on the chart, along with the already-formed left shoulder and head. We expect a slowdown to the bearish momentum, followed by a consolidation period to complete the right shoulder, and then continuation to break and close below the neckline.
A break and close below the neckline will target the support level at 137.915. This is the area where the market broke out to the upside to start the bullish wave, so we could potentially return to this point.
To note, tomorrow we have very important inflation data coming from the US; therefore, if the data is negative, this will put further pressure on the US dollar, and we could see an immediate bearish push to target 137.915.
Please do not forget to like, comment, and follow.
Thank you for your support.
BluetonaFX
We did not get the potential right shoulder due to the aggressiveness of the bearish momentum and now the US dollar is under serious pressure. However, we got the break of the neckline and have currently found support around the 137.915 area, we will see if the support continues to hold.