USDJPY bulls pattern forming
The US dollar retains a strong intraday bullish bias against the Japanese yen currency, with the recent spike towards the 112.17 level creating a bullish inverted head and shoulders pattern on the lower time frames. The bullish pattern holds an upside projection of around fifty points, which would take the USDJPY pair close to the 112.70 level. Traders should note that the four-hour time frame is showing that bearish MACD divergence may be forming.
The USDJPY pair is intraday bullish while trading above the 111.60 level, key technical resistance is found at the 112.17 and 112.70 levels.
If the USDJPY pair trades below the 111.60 level, sellers may test towards the 111.10 and 110.70 support levels.