USD/JPY Price Analysis: Offers on double top formation but bulls are still hopeful
|- USD/JPY has tumbled after a double top formation at 118.40.
- Bulls eye a range shift in the RSI (14) at 60.00-80.00 for further upside.
- The trendline placed from 114.65 is limiting the downside risk.
The USD/JPY pair has found some significant offers after hitting an intraday high of 118.40 on Wednesday. The major has witnessed a negative open-rejection reverse price action on Wednesday. The pair opened at 118.31, surged to 118.40 but found intensified selling pressure and slipped below the opening price.
On an hourly scale, USD/JPY has formed a double top as the asset found barricades on the re-test of its previous highs at 118.40. Investors dumped the asset after sensing it was an expensive bet. The trendline placed from March 4 lows at 114.65 adjoining the March 9 low and March 10 low at 115.55 and 115.85 will continue to act as major support going forward.
The Relative Strength Index (RSI) (14) has shifted its range from 60.00-80.00 to 40.00-60.00, which signals no more upside until it oversteps 60.00 again.
For an upside, bulls need to surpass the double top formation at 118.40, which will send the major to a five-year high at 118.66, followed by the 27 January 2016 high at 119.07.
On the flip side, bulls can lose control if the major violates the 30-period Exponential Moving Average (EMA) at 118.17 on the downside. Violation of 30-period EMA will drag the pair to 50-period EMA and 100-period EMA at 117.97 and 117.47 respectively.
USD/JPY hourly chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.