USDJPY Aiming For Monthly Highs

The new week starts for us with an analysis of the USDJPY pair, where we have a nice bullish setup. That is something new in October as the 10th month of the year has been negative for this instrument so far, having been in freefall for most of the month, until now.

It seems that the bad times are finally over, though. First of all, last week, the pair bounced from the long-term upwards trend line (green). In addition to that, USDJPY drew a bullish price formation; an Inverse Head and Shoulders pattern (yellow). That formation is already active and was actually activated today when the price broke the neckline (upper black). Closing the day above that line would confirm the positive sentiment on this instrument.

As for the target, well… first we should break the resistance at the 50% Fibonacci level, and later we should aim for the highs from the beginning of October. The chances that we will get there are quite high.