Back
3 Apr 2015
USD/JPY sees a double top, losses ahead – FXStreet
FXStreet (Barcelona) - FXStreet Editor and Analyst, Omkar Godbole, sees further losses ahead for USD/JPY towards 118 levels, with the pair forming a double top formation on weekly charts.
Key Quotes
“On the weekly charts, we see the pair has formed a double top formation (top at 122.00), with the neckline support located at 116.86 levels.”
“The weekly RSI has already breached the head and shoulder pattern, indicating more downside to come. A break below the double top neckline could open doors for downside targets of 111-110.00.”
“However, the immediate losses appear capped around 118.00 levels. If we plot a Fibonacci Expansion from 122 (March 10 high) to 118.31 (March 26 low) to 120.34 (March 31 high), we see the immediate support at 118.94 (38.2% Fib), followed by 118.50 (50% Fib) and 118.07 (61.8%).”
“Given the pair has lagged the weakness in the Treasury yields, the pair could easily drop to 118.07 in case of a weak NFP data.”
Key Quotes
“On the weekly charts, we see the pair has formed a double top formation (top at 122.00), with the neckline support located at 116.86 levels.”
“The weekly RSI has already breached the head and shoulder pattern, indicating more downside to come. A break below the double top neckline could open doors for downside targets of 111-110.00.”
“However, the immediate losses appear capped around 118.00 levels. If we plot a Fibonacci Expansion from 122 (March 10 high) to 118.31 (March 26 low) to 120.34 (March 31 high), we see the immediate support at 118.94 (38.2% Fib), followed by 118.50 (50% Fib) and 118.07 (61.8%).”
“Given the pair has lagged the weakness in the Treasury yields, the pair could easily drop to 118.07 in case of a weak NFP data.”