The USD/JPY pair has broken the neckline of its reverse head and shoulder towards the upside on a 4 hour time frame. The reverse head and shoulder patterns are one of the most traded patterns because of their reliability in completing their projection. The pair’s projected level could push the price beyond its resistance zone, which is mentioned below. In addition to this, the pair is also trading above its 50 and 100 day moving averages (shown in yellow and red respectively) which further gives the strength for this pattern. Having said that, the pair is testing the neckline of this reverse head and shoulder pattern once again and there is also a probability of us experiencing a complex reverse head and shoulder pattern which has two right shoulders.
The RSI and the MACD are trading in line with the most recent price action which means that the bias is towards the downside and the price movement is backed by the momentum.
120.05-119.78 Minor Support
118.75-118-.50 Major Supoort
122.91-122.69 Minor Resistance
125.85-125.64 Major Resistance