USDJPY right shoulder forming
The US dollar has corrected back towards the 109.80 level against the Japanese yen currency due to an improvement in risk-on trading sentiment. The four-hour time frame shows that the recent move may be corrective, further completing a right-hand shoulder to the existing bearish pattern. A move above the 110.60 level is now needed to invalidate the bearish pattern.
The USDJPY pair is bearish while trading below the 109.80 level, key support is found at the 109.00 and 108.40 levels.
If the USDJPY pair trades above the 109.80 level, key technical resistance is found at the 110.10 and 110.60 levels.