Forex: USD/JPY with Breakthrough of "Head and shoulders" formation




Time frame: H4

Technical Analysis: The chart shows that the USD/JPY currency pair has formed a "Head and Shoulder" formation. On 18.07.19, after Fed John Williams  comments, she managed to break the neckline of the head with which she activated the formation. The USD/JPY is currently testing the breakthrough again, with a 4-hour chart showing a "dodji" candle. This candle signals that the breakthrough is steady and it is possible for the pair to continue in a downward direction.

Indicators: At this stage, all moving averages play a role of resistance.

RSI is above its over-sold values, which allows the price to continue in a downward direction.

DeM is in its over-sold values, which does not support the "sell" scenario.

Alternative Scenario: If the price can break the neckline back and hold over it, the formation will be broken and a new price appreciation may be seen.

 Trader Milko Zashev

Read more:

If you think, we can improve that section,
please comment. Your oppinion is imortant for us.
WARNING: Any news, opinions, research, data or other information contained within this website is provided as general market commentary and does not constitute investment or trading advice. Varchev Finance Ltd. expressly disclaims any liability for any lost principal or profits which may arise directly or indirectly from the use of or reliance on such information. Varchev Finance Ltd. may provide information, quotes, references and links to or from other sites and blogs and other sources of economic and market information as an educational service to its clients and prospects and does not endorse the opinions or recommendations of the sites, blogs or other sources of information.
Varchev Finance


25 Canada Square, Level 33, office 50, Canary Wharf London, E14 5LQ +44 20 3608 6256

Universal numbers

World Financial Markets - 0700 17 600    Varchev Exchange - 0700 115 44

Varchev Finance Ltd is registered in the FCA (FINANCIAL CONDUCT AUTHORITY) with a passport in the United Kingdom: FCA, United Kingdom - registration number: 494 045, which allows provision of financial services in the United Kingdom.

Varchev Finance Ltd strictly comply with the statutes of the European directive MiFID (Markets in Financial Instruments). targeting increased efficiency, transparency and uniformity of financial instruments.
Varchev Finance Ltd is authorized and regulated by the Financial Supervision Commission - Sofia, Bulgaria: License number RG-03-02-05 / 15.03.2006

The information on this site is not intended for distribution or use by any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.


CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 63,41% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

chat with dealer
chat with dealer
Cookies policy