USD/JPY Price Analysis: Offers on double top formation but bulls are still hopeful

USD/JPY has tumbled after a double top formation at 118.40.
Bulls eye a range shift in the RSI (14) at 60.00-80.00 for further upside.
The trendline placed from 114.65 is limiting the downside risk.

Sagar Dua FXStreet

The USD/JPY pair has found some significant offers after hitting an intraday high of 118.40 on Wednesday. The major has witnessed a negative open-rejection reverse price action on Wednesday. The pair opened at 118.31, surged to 118.40 but found intensified selling pressure and slipped below the opening price.

On an hourly scale, USD/JPY has formed a double top as the asset found barricades on the re-test of its previous highs at 118.40. Investors dumped the asset after sensing it was an expensive bet. The trendline placed from March 4 lows at 114.65 adjoining the March 9 low and March 10 low at 115.55 and 115.85 will continue to act as major support going forward.

The Relative Strength Index (RSI) (14) has shifted its range from 60.00-80.00 to 40.00-60.00, which signals no more upside until it oversteps 60.00 again.

For an upside, bulls need to surpass the double top formation at 118.40, which will send the major to a five-year high at 118.66, followed by the 27 January 2016 high at 119.07.

On the flip side, bulls can lose control if the major violates the 30-period Exponential Moving Average (EMA) at 118.17 on the downside. Violation of 30-period EMA will drag the pair to 50-period EMA and 100-period EMA at 117.97 and 117.47 respectively.

USD/JPY hourly chart

USD/JPY

Overview
Today last price	118.21
Today Daily Change	-0.08
Today Daily Change %	-0.07
Today daily open	118.29

Trends
Daily SMA20	115.67
Daily SMA50	115.24
Daily SMA100	114.64
Daily SMA200	112.65

Levels
Previous Daily High	118.45
Previous Daily Low	117.7
Previous Weekly High	117.36
Previous Weekly Low	114.81
Previous Monthly High	116.34
Previous Monthly Low	114.16
Daily Fibonacci 38.2%	118.16
Daily Fibonacci 61.8%	117.98
Daily Pivot Point S1	117.84
Daily Pivot Point S2	117.39
Daily Pivot Point S3	117.09
Daily Pivot Point R1	118.6
Daily Pivot Point R2	118.9
Daily Pivot Point R3	119.35

Author

Sagar Dua

FXStreet

Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.

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