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USD/JPY - Sharp Declines After Completed Reverse H&S Pattern

Published 02/04/2016, 07:45 AM
Updated 03/09/2019, 08:30 AM

USD/JPY - Sharp declines after completed reverse H&S pattern

Such technical price behaviour like last USD/JPY movement can't be seen very often. First it formed reverse head and shoulders pattern and BoJ decision was an excuse for upward movement. Target for that movement coincides almost perfectly with reverse H&S potential target (it can be measured by range between the top of the head and neckline). USD/JPY, after reaching the target, began declines immediately and support at 118.80 didn't stop the price even for a moment.

Currently price should continue previous declines. Nearest support is at 116.70 but even this year's low at 116.10 could be tested. Alternatively if price moves back above 118.80 it will be a more optimistic signal for the bulls.

Time-frame H4
USD/JPY 4 Hour Chart

Note: This analysis is intended to provide general information and does not constitute the provision of INVESTMENT ADVICE. Investors should, before acting on this information, consider the appropriateness of this information having regard to their personal objectives, financial situation or needs. We recommend investors obtain investment advice specific to their situation before making any financial investment decision.

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