Technical analysis of USD/JPY 10/31/2019
The USD / JPY currency pair USD / JPY, in the formation of an inverted head and shoulders pattern, moves in the upward channel, where it found resistance in the area of 109.00-109.20 (MA200 on the 1D timeframe), after which it rebounded and is currently consolidating in the area of 108.70 .
At the moment, there is reason to believe that the correction will continue to the area at the level of 107.60, where the “neck line”, the lower border of the ascending channel and MA100 intersect on the 1D timeframe. After that, the resumption of growth as the formation of an inverted figure “head and shoulders” with the aim of annual highs in the region of 112.00.
Cancellation of the growth option for the USD / JPY pair after correction will be a decrease below the area of 107.00, which will indicate a breakdown of the lower boundary of the ascending channel, (MA 100), neckline of the inverted figure “head and shoulders” and may indicate a possible change in trend.
Created by Joshua Hayn