The U.S. Dollar has been forming traveling in a “head and shoulders” formation against the Japanese Yen since the end of April after having been on bullish course since the end of 2008. Generally, such a formation is a reversal of a previous trend. We see that the pair entered as price action was moving northward The formation in question might then indicate that USDJPY might be headed for lower ground.
The pair also oscillated against an upward sloping “neckline” on at least three occasions before penetrating this level of support.
