© Dukascopy Bank SA
USD/JPY was capped by resistance around 84.20 and has formed a Double Top pattern on 4H chart. The formation has 55% quality and 29% magnitude within 40 bars.
The Double Top pattern is a trend-change pattern, so the low magnitude shows that there was a continuous price movement before the formation had appeared. The price spiked support level at 83.02, decreased to 82.32, and has recovered back to the level around 82.95. If the price will break the level around 83.02, the initial target for long traders could be around 84.20.
Support level at 83.02 has become to the resistance after the pair has broken it down. If the price bounces off from the level around 83.02, the interim aim for short traders might be around 82.32.
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