USD/JPY Technical Analysis – Double Top Reversal in Focus

USD/JPY Technical Analysis – Double Top Reversal in Focus

📌 Chart Summary
Pair: USD/JPY

Timeframe: Likely 1H or 4H

Current Price: 146.727

Technical Pattern: Potential Double Top or Lower High

Bias: Bearish short-term correction

🔍 Professional Breakdown
1. Price Action Overview
After a strong bullish leg, USD/JPY has formed a rounding top structure near 146.70–147.00, suggesting buyer exhaustion.

The latest candles show smaller bodies and wicks on top – a classic sign of weakening momentum.

2. Bearish Pattern Formation
The dotted projection shows a Double Top scenario forming just below 147.00, a psychological resistance.

If the price fails to break and close above this resistance, sellers could step in aggressively.

3. Support & Resistance Levels
Type Price Significance
Resistance 147.000 Psychological level / recent top
Support 1 146.000 Previous consolidation / breakout
Support 2 145.200 Minor structure support

4. Market Sentiment & Risk
Market is likely reacting to economic data (symbol suggests U.S. event near July 10).

The steep rise is unsustainable without consolidation; a correction is healthy and expected.

📈 Trading Plan
Scenario A – Rejection Confirmed
🔹 Sell near 146.80–147.00 on confirmation of rejection candle (e.g., pin bar, engulfing)

🎯 Target: 146.00 → 145.20

🛡️ Stop Loss: Above 147.20

Scenario B – Breakout Trap
If a false breakout above 147.00 occurs but price quickly drops back inside range → opportunity to sell the fakeout.

🧠 Conclusion
USD/JPY is showing early signs of a bearish reversal after a strong rally. If sellers defend the 147.00 zone, a clean technical correction to 146.00 and possibly 145.20 is probable. Risk is tilted to the downside unless bulls reclaim and hold above 147.20.

Let me know if you want confluence from RSI, MACD, or Ichimoku for deeper validation.