USD/JPY Price Analysis: Rises above 110.00, potential head-and-shoulders on 1H

• Risk reset in stocks is boding well for USD/JPY. 
• The pair may be forming a head-and-shoulders pattern on the hourly chart. 

USD/JPY has risen above 110.00, tracking the 0.30% rise in the S&P 500 futures. 

The bulls are not out of the woods yet and a break above 110.12 is needed to invalidate lower highs setup on the hourly chart and open the doors for re-test of 110.29 (Jan. 16 high). 

However, if the resistance at 110.12 holds, the pair may fall back to 109.75, forming a head-and-shoulders pattern. 

An hourly close below 109.75 (neckline support) would confirm a bearish reversal and create room for a drop to 109.21 (target as per the measured move method). 

Hourly chart

Trend: Bearish below 109.75

Technical levels