USD/JPY Formed a Double Top and Started Falling

Later today Janet Yellen will speak at the At the Economic Club of New York Luncheon, and it seems that the market is attempting to accumulate liquidity until then, so it can react when she does.

In my opinion, the only pair that had a clear signal about its future movements since this morning was USD/JPY.

113.80 proved to be a very strong level of resistance, since the pair reached it twice in the past two weeks and started falling once it became clear it couldn’t break above it.

For now my short position remains open because I intend to wait until it reaches 113.20. In case it breaks below that level, the next levels of support are at 112.80 – 112.70.

However, we should keep in mind that Yellen’s speech can cause all sorts of surprises, which is why I intend to place a stop loss while this position is still profitable.