USDJPY – Last Friday I analyzed this pair predicting declines, which turned out to be quite limited, as they amounted to only 50 pips. When the pair reached the bottom of the channel in which it is moving since March this year, there was demand and the price went north again. Today, the pair reached a maximum of 110.01, which is only 2 pips lower than the previous high from 02.05. If we consider these two peaks as a double top formation, we can expect declines and another test of forces on the bottom line of the channel. It is worth to observe the price behaviour when contacting the mentioned line (resistance of the channel) and in the case of successfully overcoming it, look for opportunities for short. If there were any drops, they may seek support at 107.75. If, however, the demand will re-emerge and the channel resistance wouldn’t be broken, the following increases could target the nearest resistance level – 110.30 and the next 111.00.
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