USD/JPY: Double top suggests potential for a move downward – BofA

USD/JPY trades in negative territory near 129.00. Economists at Bank of America Global Research flag a double top pattern for a move towards the 126 zone initially.

Double top confirmed

"A peak in USD/JPY has been made with a double top formation. The top is of tactical size with potential to evolve into something bigger given overbought conditions on longer-term charts are now starting to correct." 

"First support area is about 126-125.21. Notable Fibonacci retracements include 123.05 (50%) and 121.10 (61.8%). The cloud lines are rising quickly, are difficult to estimate where they could be tested as support and should be watched this month."