USDJPY rallied through 116.33 levels on Thursday and remained shy by just two pips from its previous swing highs at 116.35 registered on January 04, 2022. We have removed the potential Head and Shoulder reversal proposed pattern unfolding as it looks like a potential double top in the making. Prices might test 116.50 mark before resuming lower again.
USDJPY finds immediate resistance around 116.50, while price support is now seen through 115.30 level respectively. A break below 115.30 will confirm a potential lower top in place around 116.33 and that bears are back in control. Going further, a break below 114.20 will confirm a potential downtrend has already resumed.
USDJPY bears will be poised to be back in control since the pair had reached a strong resistance early January. If 116.35 resistance holds and prices drop below 115.30, it should be extremely encouraging to bears as they continue further. The overall structure remain bearish from current levels or from 116.50-117.00 zone in the near term.
Trading plan:Potential trend reversal against 117.50 going forward.
Good luck!