Refer a friend

The USDJPY price is forming a double top pattern at a key level. Could this offer a reversal on the currency pair?

Watch the video to learn more…

USDJPY Analysis

The price of the USDJPY has been in a significant upward trend for some time now but all trends must come to an end at some point. The recent fundamentals in the market have extended the USDJPY gains. The Federal Reserve hikes rates by 50bps with more hikes expected to come could keep the USD strong and the Bank of Japan have played a big part in continuing to devalue their currency. 

The price of USDJPY could be about to reverse despite the recent bullish fundamentals for the USD. The US inflationary data forecasted this week shows a potential decline to inflation which is what the FOMC are looking for which could see some selling pressure come into the USD.

usdjpy forex chart of the day

Looking at the daily chart we can see that the impulsive phases are getting shallower which shows us the buying momentum is beginning to fade. Not only this but the price has formed a bearish rejection of the previous swing high suggesting that a double top pattern could be forming. To add confluence to the reversal the RSI indicator is showing bearish divergence. This forms when the price makes higher highs but the RSI makes lower highs. This shows that the last high formed may not be as strong as it seems. The price action could offer short trading opportunities at these highs or if the price was to complete the pattern the neckline could offer opportunities as resistance. 

Have you seen our week ahead analysis video? you can see it here.

Enjoy low spreads and quick trade executions with a live account. Our highly committed customer support team will assist you from your quick account setup to any future concerns. Start trading with Blueberry Markets today.

Join us on Telegram
and get real-time
alerts on
Indices, Gold, Crypto
and Share CFDs

Join now for free
telegram cta
bbjam graphic

Sign up to
Blueberry Jam

Back up your trade positions with insights
and how-to-guides, straight to your
inbox every week

Thank you. You have successfully subscribed to Blueberry Jam!