USDJPY – The year 2018 began with quite intense declines, since the opening of Asian markets (some are still celebrating), the pair has dropped 60 pips. On the Daily chart, we can see a characteristic Head & Shoulders formation, where the right arm (113.75) was confirmed by the next lower high created on December 21, 113.63.The blue line is the neck line of the H&S and its defeating heralds further declines. The possible range is the height of the formation – about 300 pips. But before we witness such declines, the pair must effectively overcome the mentioned neck line and the closest support at the level of 111.60 and than another at 110.80.

USDJPY Daily – Head and Shoulders formation ,bearish sign.

BTW – take a look at this analysis… just made the planed move:

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