The US Dollar remained stable and traded above the 107.10 resistance against the Japanese Yen. The USD/JPY pair even climbed above 107.25, but it struggled to gain traction above 107.45.
The pair traded as high as 107.42 and it settled above the 50 hourly simple moving average. The pair is currently consolidating in a range above 107.10 on FXOpen and it seems like there is a possible head and shoulders pattern forming with support near 107.10 on the hourly chart.
If the pair breaks the trend line support, the 50 hourly SMA, and the 107.10 level, there is a risk of a sharp decline towards the 106.50 support level in the near term.
Conversely, the pair must surpass the shoulder resistance area near 107.32 and then 107.42 level to continue higher. The next major resistance is near the 107.65 level.
