USDJPY 2017-12-04 Intra-day analysis
U.S. Senate passes tax reforms by a narrow vote
USDJPY intra-day analysis
USDJPY (112.74): The USDJPY formed an outside bar on Friday and closed bearish. The intraday rally towards 112.65 was met with strong resistance as the U.S. dollar pared gains. Price action closed on Friday right near the lower support level at 112.04. We expect to see the broader range within 112.65 and 111.61 being maintained in the short. The currency pair also fell to this support level briefly before pulling back higher to settle at the next support level. There is also a possibility that USDJPY will be forming an inverse head and shoulders pattern with the neckline resistance seen at 112.65. Therefore, watch for potential reversals within 112.04 and 111.61 which could signal a move back to the neckline resistance.
