Bearish H&S in the making?

  • USD/JPY bulls have moved in on the 136 area with eyes on slightly higher highs.
  • The prospects for the daily char’s bearish head & shoulders are eyed.

As per the pre-Topkyo analysis on Thursday, USD/JPY Price Analysis: Bears step on advances above 136.00, the pair dropped in for a brief spell in the 135.50s before claiming all the way back above 136.00. The bulls have reclaimed the area but for how long?

USD/JPY prior analysis, H1 chart

It was noted that the hourly candle has all of the makings for a strong bearish close with a focus on the 135.50s.

However, following a trip to the downside, the pair has crept higher with a high of 136.22 so far. Thus now begs the question,” where now?”

It could be argued that a bearish head and shoulders are being formed on the daily chart:

This leaves prospects of higher, but limited moves for the day ahead on the four-hour chart:

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