USD/JPY Heads North to Examine Double Top - Brace for Sell
|A day before, the USD/JPY pair was closed at 109.278 after placing a high of 109.449 and a low of 108.453. Overall the movement of the USD/JPY pair remained strongly bullish that day.
At 4:50 GMT, the Core Machinery Orders from Japan for the month of November showed a decline to -6.0% from expected 0.7% and weighed on Japanese Yen.
At 18:30 GMT, the Core Purchasing Price Index (PPI) from the United States came in as -0.2% against the forecasted 0.2% and weighed on US dollar. The Purchasing Price Index (PPI) also showed a decline to 0.0% against the 0.2% expected and weighed on the US dollar. The Unemployment Claims from the United States were increased to 252K from the expectations of 213K and added in the pressure US dollar.
The USD/JPY showed a sudden rise in the prices amid the increased positive optimism related to the trade deal.
Technically, the USD/JPY is soaring north, and on the way, it's likely to examine double top resistance around 109.700. The RSI and EMA are incredibly overbought, suggesting bulls are tried, and they may start doing profit taking soon.
The USD/JPY may offer us a sell trade after reaching to 109.700 level and closing of candles below. This can drive selling until 23.6% Fibo level of 109.400 and 38.2% level of 109.250.
USD/JPY - Trade Setup
Sell Below - 109.750
Take Profit - 109.450
Stop Loss - 110.000
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