Last week we opted to remain flat USDJPY with the pair positioned at the top of a falling channel, looking for an attractive selling opportunity. Turning to the weekly chart, we now see the makings of a Head-and-Shoulders top forming below resistance in the 99.12-100.60 price congestion region. The top of the left shoulder is marked by the top of a falling channel, bolstering the hurdle ahead of USDJPY bulls and strengthening the case for a bearish scenario. A break of the neckline near 93.52 would serve as confirmation, opening a selling opportunity to capture a decline to the low at 87.10.
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