USD/JPY Head And Shoulders Still Forming, Now With A Bonus Bear Setup

The USD/JPY continues to put in a bigger head and shoulder pattern. Head and shoulder patterns are bearish. The trigger is when the neck-line breaks. As of now, the neck-line is at 140. Should price break below this level, a calculated target to 118 is where investors should expect the USD/JPY to go.

In addition, over the last month, the USD/JPY is making a bear flag. This adds extra probability to the eventual breakdown of the head and shoulder pattern.

Look for the break of 118. That is the trigger.