Daily Forex Update: USD/JPY

The daily USD/JPY has broken lower through the support of a Head and Shoulders formation. The support of a Head and Shoulders pattern is known as a "neckline;" if the neckline is broken an entry for the pattern triggers. This particular breakdown occurred at 87.70, with initial downside support at 86.99. This level is the top of the Autochartist Forecast area (F) and extends lower to 85.92.