It’s finally happened, after months of speculating, USDJPY has closed below the 116 handle, confirming a reversal pattern that has been fifteen months in the making. The price structure formed after a massive rally that began in late 2011 catapulted the pair 5,000 pips higher. With this in mind, there’s little arguing the fact that there is plenty of downside potential should the pair continue to unravel. How much potential, exactly? While not the extent of what’s possible, the measured objective for the head and shoulders pattern comes in at 106. This area lines up with former lows from October 2014 and is also the ... (full story)