USD/JPY 4H Chart: Double Top

Our expectations with respect to the Yen are strongly bullish at the moment, after the Japanese currency pushed its exchange rate with the Buck below 122 in the past 24 hours of trading. As a result of the USD/JPY's bearish move, the double top pattern was confirmed and monthly PP, weekly S1 and 200-period SMA have all been violated. Now the focus is turning to the support area at 121, which consists of weekly S3 and monthly S1. Success here should encourage the short traders for an additional sell-off into the 118 zone, which is guarded by October low. On the bullish side, we should admit that the Dollar remains heavily oversold in the SWFX market (68% of all positions are short).