The EUR/JPY has made a substantial correction from 132.20 zone forming inverted head and shoulders pattern. As we can see H4 chart shows both M and inv H & S but the price is sitting exactly at M breakout point ( 2 ). We can clearly see 2 inner trend lines which are forming X cross confluence within POC zone ( 78.6, H3 , previous triple top swing ) 137.50-70. I have marked all important touches with red rectangles and we can observe how price respects it. Have in mind that today we will have a VERY important FED statement and volatility will be huge.
Fade moves usually happen during huge volatility and order liquidation can spur additional momentum. The price is too high at this point to long into ( the top of right shoulder + M breakout point -2 ). If the price rallies to POC zone it could reject but in that case 138.50 needs to hold the price. The target is 135.50-20 zone where the bottom of the shoulder is based. Showing both M and inv H & S is telling us that the price is undecided so another fade could happen in the POC zone. BE VERY cautious as I don't recommend any trading 2h prior to FOMC. Treat the analysis as possible move and it would be best to happen when the market volatility is normal.