The USD/JPY Trend May Reverse Into A Bullish One

The USD/JPY pair reached a strong support at 104.629 with which it formed a trend channel on the W1 time frame. The pair has reached twice both the resistance and support trend lines.

I think that the pair may renew its move to the upside to the resistance trend line.

The reason for that conclusion is the pin bar that has formed on the monthly chart last month which is a serious signal for a possible trend reversal.

Of course, that is too large a time frame, but on the D1 one we can see a figure that can be interpreted as an inverse head and shoulders pattern (in blue).  In case there is a breakout above the neckline we could expect a rally of at least 320 pips, or even  rally to the resistance trend line of the channel (in red).