The USDJPY is testing the neckline of an inverted H&S formation.

The USDJPY has closed the day at a very key area. This 109.5 level is the confluence of a horizontal resistance zone and most importantly the neckline of an inverted H&S formation that has been developing since the beginning of summer. A breakout from here, theoretically points to a 500 point move higher while another rejection will risk that the formation will soon lose symmetry. 110.70 is the 1st target in the event of a breakout.

USDJPY Inverted H&S Formation

Steve Voulgaridis