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USD/JPY Rally Meets Its Match At A Potential Double Top

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Aayush Jindal

Key Highlights

  • USD/JPY again did not surpass the 159.00 resistance and dipped.
  • A possible double top pattern could be formed at 159.00 on the 4-hour chart.
  • EUR/USD started a minor recovery wave from the 1.1120 support.
  • WTI Crude Oil prices might gain traction if there is a close above $98.00.

USD/JPY Technical Analysis

The US Dollar made another attempt to clear 159.00 against the Japanese Yen. USD/JPY failed to gain momentum, struggled to continue higher, and dipped.

Looking at the 4-hour chart, the pair traded below a contracting triangle with support at 158.20. There was a dip to the 50% Fib retracement level of the upward move from the 156.37 swing low to the 158.54 high, and the 100 simple moving average (red, 4-hour).

Immediate support could be near the 61.8% Fib retracement level at 157.36. The first major support might be near the 200 simple moving average (green, 4-hour) and 157.00.

A close below 157.00 might accelerate the decline. In the stated case, the pair might drop to 155.50. If there is another increase, USD/JPY could face resistance near 158.40. The first major resistance might be 158.80.

The main hurdle could still be 159.00. A close above the 159.00 pivot level could start a steady increase. In the stated case, the pair might even surpass 160.00.

Looking at EUR/USD, the pair found some support near 1.1120 and might try a recovery wave if USD/JPY extends its decline.

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