Technical Analysis/USD/JPY

USD/JPY technicals: Flag or double-top

     Nice looking formations on the 4-hourly USD/JPY chart, and all we need to do is figure out whether the flag formation (continuation pattern implying more gains) or the double-top formation (topping pattern implying a break lower) is dominant.

It’s pretty clear in my mind that the bulls have the stronger cards here. The recent trend is in their favour and burden of proof is with the bears, they must break and hold below 81.70 in order to confirm a turn of events.

I’d continue to play this range with a bullish bias but be ready to up the ante once we get a break in either direction.

  1. Basing on the feeble post NFP’s spike,i would hazard a guess that it is a double top forming,ICBW.And dec 16th might just disappoint all the bulls out there…again….ICBW.Cheers Master Sean.

  2. I am not big on eliott, but one can argue that 3rd wave is missing on rise from 77. (first one 77.5-80.5, second 79-82.5… Somewhere around 84 would be more logical local top in my opinion… So my low conviction verdict is on continuation… But I am not betting on it. Cheers

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