The US dollar could start to stage a technical correction lower against the Japanese yen currency, after the pair found strong resistance from the 112.22 level last Friday. A head and shoulders pattern on the lower time frames is warning that the USDJPY pair could fall back towards the 110.70 level. Overall, the 111.50 level should act as major direction pivot point for the USDJPY pair this week.
The USDJPY pair is only bearish while trading below the 111.50 level, key support is found at the 111.10 and 110.70 levels.
The USDJPY pair is only bullish while trading above the 111.50 level, key resistance is found at the 112.00 and 112.22 levels.
