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USD/JPY - Double Top Attempt

The Bank of Japan maintained its historic pace of stimulus noting also that the softer Japanese Yen exchange rate recently has provided relief. 

The USD/JPY was bullish after the NFP, but failed to test the 110.00-110.08 high. Note that the RSI has tagged 30 and since held below 60, showing maintenance of the bearish momentum. In retreating, USD/JPY is forming a double top in the 4H chart. A break below 108.00 would complete a double top. 

USD/JPY Daily Chart

(click to enlarge)

Then, if we get a pullback, a hold below 109 should help add weight to the bearish correction scenario. A break above 109.25 however might shelve this price top scenario, and revive the bullish outlook, which has the 110.08 high, then the 110.68, 2008-high in sight.

If price does confirm topping, the first support to monitor for will be around 107.00, a previous consolidation area in mid September, and the 200-period simple moving average in the 4H chart.

Below that the next key level will be the previous 2014-high, before September price action broke through, in the 105.45-105.50 area.

USD/JPY Daily Chart 10/7(click to enlarge)