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AUD/JPY Reverses Direction on Double Top Formation

The recent uptrend on the daily AUD/JPY chart was in no way a very long-term one, running from late November 2017 through early January 2018. In just a few days it has formed a perfectly valid double top pattern with two distinctive peaks on January 8 and January 23. The most recent price action (Friday) suggests significant weakness in the Aussie and quite some strength in the Japanese yen.

You can see the double tops marked with the upper yellow horizontal line. The bottom yellow line marks the “neckline” of the formation. I will use a 10% buffer to enter this trade and avoid fakeouts. My potential entry is marked with the cyan line on the chart below. My target (the green line) is at 100% of the pattern’s height below the “neckline.” I will set my stop-loss level to the high of the breakout candle or to the preceding high if the former is trading mostly below the lower border. You can click on the image below to see a full-sized screenshot:

AUD/JPY - Double Top Pattern on Daily Chart as of 2018-02-04

I have built this chart using the ChannelPattern script. You can download my MetaTrader 4 chart template for this AUD/JPY pattern. You can trade it using my free Chart Pattern Helper EA.

If you have any questions or comments regarding this double top on the AUD/JPY chart, please feel free to submit them via the form below.

Posted on Forex blog. Click Here For Original Source Of The Article

About Louie Lewis

Louie Lewis
Successful forex trading starts with you first. Then comes the actual strategies and techniques. I have been involved with forex and forex trading for a few years now. It is a wonderful way to build wealth. The learning never stops and I want to help others along their journey into this wonderful market of opportunity.

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