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Head And Shoulder In USD/JPY Suggests 82.27 Target
Written by article default Monday, 10 January 2011 17:34
- USD/JPY’s Head and Shoulder Forming
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USD/JPY 1/11/0211
- 4H and 1H: Head and shoulder formation is spotted in the USD/JPY 1H chart IF the 82.85 neckline is broken. We might want to go down to the 15-min chart to see the break in more detail, and see if there is a pullback to confirm the head and shoulder.
- Below 82.27 is the 82.00(61.8% retracement seen in 1H chart) and then the 81.65 support area.
- The USD/JPy was strong to end the week and appears to have completed a bullish impulse wave,
- The correction would reach 50% if it gets to 82.30. Then 61.8% near the 82.00 area.
- Other clues for near-term reversal is that 4H RSI shows bearish divergence, and the 1H RSI is dipping below 40, looking to tag 30 soon.
- After a reversal however, we should look for another impulse wave towards 84.50.
Will the USD/JPY continue higher even after a correction following the head and shoulder? We would love to hear from you