Inversely, the USD/JPY has moved well towards the 113.65 upside target alluded after the breakout from the inverse head and shoulders pattern (labelled L, H & R).
The currency pair is now trading in overbought territory, although in principle the approach now is similar to that in Gold i.e. we are not looking to trade against the prevailing trend. With this in mind, trend followers might look to a pullback towards 112.36 for long entry, having ratchetted the stop loss/failure level to a close below 111.78. Targeting a move to 113.65, a break of which further favouring a move to 114.34.