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Double top formation

11 October 2016, USD/JPY

Double top formation

Wave Analysis

Instead of going short a previously forecasted, the pair retraced to the upper side and ended up forming a double top around our previous highest high, $103.96. If the the current 4 Hour candle can close bearish as it is right now, then we expect a possible bearish impulsive momentum to the lower side. Any clear breakout above yesterday's highest high, 104.15, may invalidate the anticipated downward rally and could culminate into a bullish price rally towards $105.00. We hope to trade this pair alongside USD/CHF and EUR/JPY. These pairs have a strong positive correlation of up to +86% and will have a similar price action during this intraday.

Trade Recommendations:

As long as the pair trades below $103.96, expect a possible bearish price movements towards 101.74. Buy position can only be recommended above 104.15 with an ideal target at $105.01

Graham Osano
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