USD/JPY Influenced By Small H&S Formation
Admirals | May 14, 2013 09:02AM ET
After setting new highs above 102, USD/JPY is correcting the recent movement. Local tops are shaped like a Head and Shoulders formation, which in this case can be viewed as a minor sell signal. As we can see, the neck line(red) was already broken and defended at the end of the Asian session. The minimum target for this formation is around 100.90, but the real strong support is 99.90 which was an important resistance on the 11 and 21 of April.
The scenario for this pair is on the rise, which has strong fundamental reasons. There is obviously a place for small technical corrections but we have to be aware that all of them will be used by long-term trend followers to open long positions. So for now the best possible strategy is to stick to this plan and open buy positions on the local supports.
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