USD/JPY forms double-top at a critical level – break or bounce?

Dollar/yen continues its upwards move. After a short pause that followed the mixed Non-Farm Payrolls[1], the pair continues riding the tiger along the upwards support line and hits a major barrier.

114.37 is the cycle high. The level was reached in May and the pair could not advance from there. Two months later, USD/JPY hit a high of 114.30, very close to that peak. After the initial rush, we had a small retracement, but the battle continues.

Make or break?

The next level to watch is the round 115 number. While it did not work as technical resistance nor support, it is certainly a psychological barrier.

Above 115, we find 115.35, which already had a role in the past. Further above, 116 is a veteran line, serving as strong support in 2016.

At the current levels, 113.50 is the first line of support, in the case of a big bounce. It is followed by 112.75, that separated ranges.

More: Elliott Wave analysis for USD/JPY[2]

Get the 5 most predictable currency pairs[3]

from Forex Crunch http://feedproxy.google.com/~r/ForexCrunch/~3/MU6KmLVdMt4/

from Online Forex Trading Resource
View thesource article here

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