USDJPY potential head and shoulders forming

The US dollar has moved back towards the pivotal 109.60 level against Japanese yen currency, following another failed attempt at the 110.00 resistance level. If the USDJPY pair continues to trade lower, a bearish head and shoulders pattern may start to take formation. Caution is still advised over the short-term, as buyers are still creating bullish higher price highs.

• The USDJPY pair is only bearish while trading below the 109.60 level, key technical support is found at the 109.14 and 108.67 levels.

• If the USDJPY pair holds above the 109.60 level, buyers may test towards the 110.00 and 110.40 levels.