Daily Price Action
Shares

AUDJPY: Double Top or Not?

Shares

During yesterday’s session we looked at what could be a new range developing for the NZDJPY. Similarly, the AUDJPY entered a new range last week following the August 12th close above 87.80.

Friday’s session retested this area as new support and buyer’s responded. In fact, the pair nearly reached both support and resistance with Friday’s 160-pip candle.

Sellers made a stand during yesterday’s session at 89.35 resistance. This is the current 2017 high and is also a level that attracted buyers in both February and July of 2015.

Seeing these two highs at the same level tends to attract speculation about whether or not this is a double top pattern. But no matter how you look at it, the fact is we don’t have enough information to make that call one way or the other.

What we can do is stay patient and use price action to signal what’s likely to happen next. If this does unfold as a double top, the 85.80 handle is the level to watch. It’s going to take a daily close (5 pm EST) below it to confirm the reversal pattern.

However, we may not have to wait that long to find out. A daily close below the 87.80 support area would be an early sign that sellers have regained control. It would also expose neckline support at 85.80.

On the other hand, a daily close above 89.35 would suggest that the next leg higher is underway. It would expose the November 2015 high at 90.70, which is an area that had previously served as support in late March and early April of the same year.

Although we don’t know the outcome just yet, one thing did catch my attention during yesterday’s session. The measured objective for the possible double top formation lines up perfectly with the current 2017 low at 81.50.

Whether that’s of any significance is, of course, yet to be determined.

Want to learn how I trade price action? Watch My Free Webinar

AUDJPY possible double top pattern on daily chart

Leave a Comment:

15 comments
phornniwat keawkanya says

Thanks Analysis Techniques

Reply
    Justin Bennett says

    You’re welcome.

    Reply
Richard says

Justy you are genius

Reply
    Justin Bennett says

    Not a genius, I just like to keep things simple. Thanks for the kind words, Richard.

    Reply
Iamo says

You are always on point. I always look forward to your post. I figured out a sell position here.

Reply
    Justin Bennett says

    Glad to hear that. I’m always happy to help.

    Reply
Piotr says

“What we can do is stay patient” – excellent work 🙂

Reply
    Justin Bennett says

    Thanks, Piotr.

    Reply
Mike says

What do you mean by ‘double top’?

Reply
Roy Peters says

No stress on the higher time frames allows time for better decision making.

Thanks Justin

Reply
    Justin Bennett says

    Absolutely! Less screen time means less stress and emotional decision-making.

    Reply
Khulekani says

Your analysis is good!!!! I am learning a lot from you

Reply
    Justin Bennett says

    That’s great to hear. Let me know if you have questions.

    Reply
Add Your Reply