USD/JPY technical analysis: Head-and-shoulders breakdown on 4H chart

• USD/JPY's 4-hour chart shows head-and-shoulders breakdown. 
• The breakdown has opened the doors for sub-108.00 levels. 

USD/JPY is operating on slippery grounds, courtesy of Brexit-led risk aversion in the equity markets. 

The pair is currently trading at 108.30, representing a 0.16% loss on the day. 

The pair may end with a much bigger daily loss, as the 4-hour chart is reporting a head-and-shoulders breakdown. 

That pattern represents a transition from the bullish to bearish market and suggests scope for a drop to 107.86 (target as per the measured move method). 

The breakdown is also supported by a below-50 reading on the relative strength index (RSI). 

The bearish view would be invalidated if the spot finds acceptance above the neckline resistance (former support) at 108.40.

4-hour chart

Trend: Bearish

Technical levels