USDJPY - Inverse Head and Shoulders on Daily
Due to recent days' price action, USD/JPY seems to be in the process of completing an Inverse Head and Shoulders pattern, signalling a possible longer term reversal of the down trend. This is supported fundamentally by rising economic sentiment worldwide and the likelihood that the FOMC will act to tighten monetary policy later this year, and almost certainly before we see any action from the Bank of Japan. Japanese officials, including Finance Minister Naoto Kan have also become more vocal about the yen's strength, so the threat of intervention in order to weaken it is on the table. This also bodes well for our scenario.
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