Head and shoulder pattern formation in USD JPY pair

26 Mar 2023

The USD JPY pair is trying to make a head and shoulders pattern in its daily chart ,that may help the pair to touch its pre covid level of 110-115 lvls provided if it breaks the 68.10% of fibo lvl (125.36) clearly. Fundamentaly also the current formation of US and euro banking crisis (led by fall of SVB & other regional bank from US to fall of CS bank in Euro zone and now DB cds hiting 4 yr highs) has created risk -off sentiment in the investors and has caused the appreciation of JPY ( a safe heaven ).A further deterioration of investors sentiments due to the looming baking crisis may further extend the JPY to appreciate in coming days.