USD/JPY Pair Vulnerable Above Support Level - H&S Pattern

25 apr 2023During the early European session, the USD/JPY pair is exhibiting vulnerability above the critical support level of 134.00. This is due to selling pressure amidst the anticipated fading of the recovery move in the US Dollar Index (DXY). Although the USD Index rebounded after hitting a weekly low of 101.20, the absence of supportive indicators suggests that the recovery move is short-lived.

Upon analyzing the 1-hour chart, a Reversal Head & Shoulder pattern is evident in the price action. Our recommendation is to initiate a short trade by entering below the Neckline of the pattern.