USD/JPY: Potential inverted head and shoulder price pattern

The U.S. dollar breached 108.220 resistance indicated in my previous post and rallied to 108.716 in yesterday's trades. The rally continued after the release of October ISM Non-Manufacturing PMI data which printed at 54.7 vs 53.5 forecasts and 52.6 the previous period.

The dollar reached 109.225 before retreating towards 108.970 at the time of writing. An important price pattern emerged after yesterday's rally, which is a potential head and shoulder pattern which could come into play if the right shoulder pattern is to be completed. This could see the U.S. dollar head down to around 108.540 before going back up to 108.970 and 109.780