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USD/JPY price action continues to underscore the potential for a massive top formation

Last week I touched upon the potential for the USD/JPY to potentially form a monster double top on the longer term charts. That is because the dollar topped out in 2022 at 151.95. It was exactly a week ago, last Monday that the USD/JPY came very close to matching that 2022 high, when it topped out at 151.91. As the price came lower, the observation that it could be at risk of forming a huge double top on the longer term charts was conveyed. That is still in the balance of course, but the further the dollar falls back from that high, the greater the chances will be of it happening. There is no direct evidence of the BOJ actively supporting the Yen near that 151.95 level, but it could be covertly at work. Naturally, the BOJ will want to keep that quiet anyway. Even if they are now active in that regard, the market is seemingly doing the job for them and as you can see this morning, the drop closer to 148 has taken the prevailing price further away from that recent 151.91 high. The failure to reclaim the 150 handle earlier today is another immediate factor to consider. So, there has been much coverage here on the Yen today and there is good reason for that, because it is still the driving force behind so much of the price action elsewhere. The USD/JPY is just now trading at 148.44
 

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