This pair has entered the consolidation zone once again after failing to match the previous high. The head and shoulders pattern is 95% complete as price is looking to retest the neckline once again and a break of this would be further confirmation that USD/JPY would melt taking out the monthly support and beyond. On the daily timeframe the recent bullish move stalled around the 38.2 fibonacci level, which illustrates that this bear market trend is strong and will continue now that this retracement seems to be over. The only obstacle on the way is the monthly support of 112.02, which one taken out, we can expect to see price to go lower towards 111.00.
Trade closed: stop reached:
Stop was too tight and got taken out before the melting to the downside the following day