USD/JPY – Potential Inverse Head & Shoulder on 4-hr chart
Inverse head and shoulder being a bullish reversal pattern needs to appear at the bottom of the downtrend.
On the 4-hr chart, continuation of a rebound from near 101.00 levels could lead to an inverse head and shoulder formation with neckline around 104.80-105.00 levels.
Calling a move towards 105.00 levels from here might appear premature, however, take note of the fact that the pair has rebounded repeatedly from a larger falling trend line coming from 1998 high, plus we also have a bullish candle on monthly chart . When viewed in light of those arguments, a move back to 105.00 doesn’t look difficult.
As of now, the pair is trading around 101.70. Breach of resistance at 102.00 would open doors for 102.62 (50-DMA) levels. On the downside, only a break below 100.71 (50% Fibo of 2011 low – 2015 high) would signal bullish invalidation.
On the 4-hr chart, continuation of a rebound from near 101.00 levels could lead to an inverse head and shoulder formation with neckline around 104.80-105.00 levels.
Calling a move towards 105.00 levels from here might appear premature, however, take note of the fact that the pair has rebounded repeatedly from a larger falling trend line coming from 1998 high, plus we also have a bullish candle on monthly chart . When viewed in light of those arguments, a move back to 105.00 doesn’t look difficult.
As of now, the pair is trading around 101.70. Breach of resistance at 102.00 would open doors for 102.62 (50-DMA) levels. On the downside, only a break below 100.71 (50% Fibo of 2011 low – 2015 high) would signal bullish invalidation.
