Kumowizard
Short

USDJPY - Increasing chance for a double top?

FX:USDJPY   U.S. Dollar/Japanese Yen
236 1 8
I have a few patterns only which I try to catch sometimes. These are: wedges, H&S or inverse H&S, and double (triple) tops and bottoms.

In this case with double top we have only one problem. Before it gets validated it has to fall a lot: obviously we'll know if it becomes a double top only when and if it trades below 122,30. Until we see more bearish confirmation this is just a theory and one possibility, so let's check other details in depth.

Daily:
- Bullish Ichimoku setup above Kumo, but this time we do not have such a strong momentum . Supports are ard: 123+, and most importantly 122,30.
- A bearish Ichimoku reversal would also validate the double top pattern (requires a break below 122,30)
- Heikin Ashi signals hesitation and a possible pull back ( bearish swing) ahead. haDelta/SMA3 struggles to stay above zero line, actually crossed down below zero. HA oscillator also turns bearish . Anyway from only daily candle it is hard to tell wether we really see a bearish swing or if it will go up again to test 125+ once more.
If someone is long, should trail stop loss to the PSAR level ard 123,90.

4H:
- Neutral Ichimoku setup, Price trades in the Kumo cloud, exactly at short term equilibrium: future Senkou B, 100 WMA and Kijun Sen.
- Heikin Ashi looks to turn possibly bearish again at important supp/res levels, but we need to wait for this candle close and haDelta/SMA3 to confirm.
- More bearish momentum gain would happen below 123,95. For conservative traders that is the ultimate level to watch for a short entry.

Please note also that the volatility of this pair has become extremely low. So make sure you adjust your position sizing and stops according to ATR.

Related Ideas

I did not put it on the chart, but if you check regular MACD (26,12,9) you can also see there is a huge negative divergence in it since it has reache prior top
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