USDJPY Must Hold 108.40

The US dollar has staged a pullback against the Japanese yen currency, following the release of much weaker than expected data points from the United States economy yesterday. The four-hour time frame shows that bulls must defend the 108.40 level this week to avoid a large inverted head and shoulders pattern. If bulls can defend the 108.40 area this week then the bullish price pattern is still suggesting a rally towards 110.00 is possible.

The USDJPY pair is only bullish while trading above the 108.80 level, key resistance is found at the 109.35 and 110.00 levels.

The USDJPY pair is only bearish while trading below the 108.80 level, key support is found at the 108.40 and 108.00 levels.