FX.co ★ Inverted head and shoulders breakout in USDJPY.

In a previous posts we talked about the inverted head and shoulders pattern in USDJPY as price was challenging the neckline resistance. Now price has broken above this resistance and it is very important to see where April closes.

USDJPY is climbing strongly above 128 and for a second month the advance higher is very impressive. Price is now trading above the neckline resistance validating the inverted head and shoulders pattern. Trend remains bullish in all time frames. There is no sign of a reversal. A back test of the break out area (neckline) at 125-126 is justified and bulls will need to form a higher low in order to gather momentum for more upside.