USD/JPY Technical Analysis: Forming a bearish Head & Shoulders pattern on hourly chart

Haresh Menghani FXStreet

• The pair struggled to build on overnight goodish rebound and was now seen retracing from an important horizontal resistance, near the 112.65 region.

• The pair now seems to be in the process of forming a bearish Head & Shoulders chart pattern on the 1-hourly chart, with neck-line support near the 111.95 region.

• Meanwhile, neutral technical indicators on hourly/daily charts have failed to support any directional bias, though seemed to have lost positive momentum.

Hence, it would be prudent to wait for a convincing break through the neckline support before •confirming the bearish set-up and positioning for any further near-term downfall.

USD/JPY 1-hourly chart

USD/JPY

Overview:
    Last Price: 112.5
    Daily change: 6.0 pips
    Daily change: 0.0534%
    Daily Open: 112.44
Trends:
    Daily SMA20: 112.96
    Daily SMA50: 112.04
    Daily SMA100: 111.5
    Daily SMA200: 109.84
Levels:
    Daily High: 112.86
    Daily Low: 111.95
    Weekly High: 112.75
    Weekly Low: 111.62
    Monthly High: 113.71
    Monthly Low: 110.38
    Daily Fibonacci 38.2%: 112.3
    Daily Fibonacci 61.8%: 112.51
    Daily Pivot Point S1: 111.98
    Daily Pivot Point S2: 111.51
    Daily Pivot Point S3: 111.07
    Daily Pivot Point R1: 112.88
    Daily Pivot Point R2: 113.33
    Daily Pivot Point R3: 113.79

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

EUR/USD hits two-day highs near 1.1820

EUR/USD picks up pace and reaches two-day tops around 1.1820 at the end of the week. The pair’s move higher comes on the back of renewed weakness in the US Dollar amid growing talk that the Fed could deliver an interest rate cut as early as March. On the docket, the flash US Consumer Sentiment improves to 57.3 in February.

GBP/USD reclaims 1.3600 and above

GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.

Gold climbs further, focus is back to 45,000

Gold regains upside traction and surpasses the $4,900 mark per troy ounce at the end of the week, shifting its attention to the critical $5,000 region. The move reflects a shift in risk sentiment, driving flows back towards traditional safe haven assets and supporting the yellow metal.

Crypto Today: Bitcoin, Ethereum, XRP rebound amid risk-off, $2.6 billion liquidation wave

Bitcoin edges up above $65,000 at the time of writing on Friday, as dust from the recent macro-triggered sell-off settles. The leading altcoin, Ethereum, hovers above $1,900, but resistance at $2,000 caps the upside. Meanwhile, Ripple has recorded the largest intraday jump among the three assets, up over 10% to $1.35.

Three scenarios for Japanese Yen ahead of snap election

The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans.

XRP rally extends as modest ETF inflows support recovery

Ripple is accelerating its recovery, trading above $1.36 at the time of writing on Friday, as investors adjust their positions following a turbulent week in the broader crypto market. The remittance token is up over 21% from its intraday low of $1.12.