USDJPY: Inverse Head and Shoulders Long Opportunity

30 Jun 2019

Looking at the 4 hour chart, we clearly see an inverse head and shoulders pattern forming, signalling a reversal from the previous downtrend. This is further supported by the fact that the second "shoulder" is supported by the 50 SMA; and the 50 SMA line has been broken by the 20 SMA line as well. All in all, this signals a good long opportunity for a healthy 1:2 risk to reward ratio (at the next resistance level).