As you can see from today’s chart there looks to be an inverted head & shoulders pattern emerging.   This is short term but it does signify a bottom if the neckline of 1.4765 is pushed through.    If that level is broken then the top of the November – February consolidation zone of 1.49 could be achieved.    On the other hand, if there were to be another bear move then the target of 1.4515 could be the price to end the bear leg and contain a sharp bull move.

Since the drop we have seen some range trading which is creating a nice flag pattern, indicated on today’s chart.   An upside target could be close to 1.90 and a downside target could be as far as 1.8225.   At this time we are awaiting a break in the flag.

Where o’ where will the yen go?   Yesterday’s low of 109.50 is close to a 50% retracement from the bull move of 108.36-110.65 and today’s move to 110.26 is 61.8% from 110.65-109.55.   After hitting 110.26 there was a nice drop to 109.7 showing there is some bearish pressure to look forward to.   If the support of 109.55 is broken then the next step would be to break the first trendline indicated on today’s chart.   This could then bring on a bear move to 109.10-00 where the next support trendline (6 months old) is found.   Eventually price action could take a bull run and test the long term price target at 61.8% retracement (113.25) and start the next bear leg from there.