USDJPY has been trading around 112 and below the Summer highs of approx. 113.20. USDJPY is at a major resistance area right now. Price is not only challenging the important downward sloping trend line resistance from the 2015 highs…
…but has also formed an inverted Head and Shoulders pattern with the neckline at 112.20
Resistance levels to watch above are at 112.20 and next at 112.60. Breaking above these levels will open the way for a push much higher imo. However as long as we remain below this resistance area, we should not ignore the possibility of another major rejection like the last time we challenged this resistance trend line. The last time prices got rejected and reversed, we saw price fall below 113 towards 110. Support is found at 111.75-60 area and below that we see 111.20-111.
