USD/JPY Erases April Rally; H&S Target is Still Lower

Daily

Chart Prepared by Jamie Saettele, CMT

DailyFX Trading Guides and Forecasts

-The last USD/JPY noted “be aware of reversal warning signs, including divergence with gold (not at a new high), and divergence with the Nikkei 225 (not at a new low). USD/JPY turned up sharply. Today’s dip found support at 110.66 (March low), which is promising for near term continuation.” Today’s drop obviously negates the ‘promise for near term continuation higher’. Withstanding extreme short term volatility, focus is back on a 105 handle (January 2014 high, October 2014 low, and head and shoulders target).

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