The USDJPY looks poised to create a double top.
The big rejection at the 108.50 level came following the very poor ISM Manufacturing data yesterday as the pair slid into key support today at the 107.00 level. The sheer strength of the move the last two days is something to garner your attention. However, a break of the key 106.94 support which is also a 38% retracement could lead us to the 105.31 78% retracement rather quickly in an inverse “W” formation (M Top). regardless of what you want to call this formation, bulls should be very careful in the coming days.
Blake Morrow
