The US dollar has started to reverse direction against the Japanese yen after finding strong technical resistance from the 109.92 level. The direction of the USDJPY pair is increasingly linked to the bearish head and shoulders pattern on the four-hour time frame. Overall, the bearish head and shoulders pattern on the four-hour time frame and the releases are core PCE data from the US economy are the main themes to watch.
The USDJPY pair is only bearish while trading below the 109.80 level, key support is found at the 109.00 and 108.40 levels.
If the USDJPY pair trades above the 109.80 level, key technical resistance is found at the 109.92 and 110.30 levels.
