USD/JPY 4H Chart: Double Top

Source: Dukascopy Bank SA
© Dukascopy Bank SA
There are good reasons to believe that USD/JPY is bearish that and we should expect a strong sell-off. The currency pair has formed a double top pattern, and most of the four-hour and weekly technical indicators are pointing south. The decline will be confirmed once support at 122.20/08 is broken, and in this case the first target will be the 200-period SMA and weekly S2 at 121.40. If the latter support proves insufficient to negate the downward momentum, the next potential ceiling will be at 120.05, represented by the Oct 20 low and monthly PP. However, we should note that the market is already overcrowded with bears, being that 73% of open positions are short.
© Dukascopy Bank SA
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