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USD/JPY is Attempting a Small Double Top

The USD/JPY rallied this week, from a low of 106.25 up to 108.35 before stalling. The 1H chart shows price above the 200-, 100-, and 50-hour simple moving averages (SMAs). The 1H RSI has tagged 80 and is so far still above 40. This shows bullish bias and bullish momentum. 

USD/JPY 1H Chart 10/24
(click to enlarge)

As we head into the weekend, USD/JPY is stalling, and showing a double top attempt after another failed attempt to break above 108.35 today (10/24). We should also consider a more neutral interpretation, that it is simply a consolidation. Even if it does form a double top and break below 107.85, USD/JPY would still look bullish. The 107.35-107.40 area is a previous support/resistance area and should be monitored for buyers, especially if the rising trendline from 105.19 reinforces this area. We might even see buyers around the 107.60 area, where price stalled briefly this week.

A break above 108.35 continues the bullish outlook, with the 110-110.08 highs on the year in sight.