USD/JPY Monthly Outlook: Correction is Looming

USD/JPY correction is looming

USD/JPY is showing Head and Shoulders pattern on daily chart and there is a looming correction. Last week a FED member and Bank of Boston president said that conditions haven’t been met yet to warrant a rate hike. Technically USD/JPY could see a breakout below the neckline of Head and Shoulders pattern. If the breakout is successful the pair should follow to 118.06 first. On a bigger scale correction technical level is confluence of L5 and price level. If we take the distance between the top of the head and neckline and add it to the breakout spot below the neckline it shows a confluence of L5 and 115.55 region. Shorting into rallies could be option as correction could happen soon.

USD/JPY Daily Chart

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