The US dollar has pulled back from the 109.80 level against the Japanese yen currency as the greenback starts to give back Wednesday’s strong gains. The four-hour time frame shows that the latest move higher could have completed the structure of a head and shoulders pattern, as the final right-hand is formed. Weakness under the 109.20 level is now needed to increase technical selling pressure towards the USDJPY pair.
The USDJPY pair is only bullish while trading above the 109.20 level, key resistance is found at the 109.80 and 110.00 levels.
The USDJPY pair is only bearish while trading below the 109.20 level, key support is found at the 108.95 and 108.45 levels.