Bit of a head & shoulders pattern forming
We're seeing jitters develop in different ways ahead of the Fed. The stock market is worried about a more hawkish Fed and that's led to a bit of downside pressure. In FX, a hawkish Fed would normally boost the dollar but in something like USD/JPY it could weigh if stocks are hit hard enough that there's a flight to quality.
Technically, it's a bit of a messy head & shoulders pattern on the 10 minute chart. There's also a straight break below Friday's low and today's earlier sag. Either way, that points to losses but perhaps only another 40 pips below to Thursday's low of 105.42.
