The USD/JPY is in the midst of forming a Head and Shoulders Patter, with the previous shoulder seeing a historical rejection from the 2/8 Octave in confluence with D H5. Should price move into the POC zone, we will be expecting further bearishness.
The POC zone is 108.10-20 [D H5, 2/8, ATR P High, W H3]. Seeing how price is stalling from immediate bearishness, we expect a mild bullish retracement to our POC zone before price proceeds further down. Price action wise, SHS patterns tend to be symmetrical in nature – the way the first shoulder is formed is likely the way the second shoulder is formed as well. Therefore, we will be looking for hesitation dojis for trigger cues. Otherwise, any strong bearish candlestick configurations will suffice as well, like an engulfing bar, shooting star, hanging man etc. Targets are 107.61 [D L4, -1/8, ATR L3, ATR L2, W L3, SHS Neckline]. A strong close below the neckline would eventually bring price to 107.15 W L4 Level.
For this analysis to be valid, price must not close higher than 108.60 Head level.