USD/JPY price could potentially decline due to Reversal H&S

24 de abr. de 2023

During the Tokyo session, the USD/JPY pair is attempting to reclaim the immediate resistance of 134.50. This move comes as the new Bank of Japan Governor, Kauo Ueda, emphasizes the importance of maintaining an accommodative monetary policy. Governor Ueda is a staunch advocate for continuing the ultra-loose monetary policy, which has been in place for a decade, on the assumption that Japan's inflation will peak sooner. From a technical standpoint, a reversal Head and Shoulders pattern has emerged on the lower timeframe. If the price breaks below the neckline, currently located around 133.75, the price may decline, and the opportunity to recapture the resistance at 134.50 could be lost.