The exchange rate of USD/JPY currency pair has created a potential head and shoulders pattern. The neckline has been broken and the market has plunged. This type of breakout may confirm the bearish scenario according to the price pattern.
The nearest potential resistance is set by previously broken lows at 104,89 and 105,00. The first one has been tested which may also confirm the whole pattern. If it is further defended we could expect another decline to the low of 103,94 and to the textbook target at 103,83.
It seems that only a move above mentioned resistance may change the scenario from bearish to bullish.
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Daniel Kostecki, Chief Analyst Conotoxia Ltd.
Materials, analysis and opinions contained, referenced or provided herein are intended solely for informational and educational purposes. Personal opinion of the author does not represent and should not be constructed as a statement or an investment advice made by Conotoxia Ltd. All indiscriminate reliance on illustrative or informational materials may lead to losses. Past performance is not a reliable indicator of future results.
81% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
The nearest potential resistance is set by previously broken lows at 104,89 and 105,00. The first one has been tested which may also confirm the whole pattern. If it is further defended we could expect another decline to the low of 103,94 and to the textbook target at 103,83.
It seems that only a move above mentioned resistance may change the scenario from bearish to bullish.
________
Daniel Kostecki, Chief Analyst Conotoxia Ltd.
Materials, analysis and opinions contained, referenced or provided herein are intended solely for informational and educational purposes. Personal opinion of the author does not represent and should not be constructed as a statement or an investment advice made by Conotoxia Ltd. All indiscriminate reliance on illustrative or informational materials may lead to losses. Past performance is not a reliable indicator of future results.
81% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.