Will USD/JPY Form a Double Bottom?

Although USD/JPY renewed its move to the downside, it is yet to form a new low.

If we look at the daily time frame we will notice that 100.00 – 99.00 is a very strong resistance zone. The last two candlesticks on the same time frame are spinning tops , which means that there is a significant possibility for the pair to form a double bottom and to start rising again. We will have to keep an eye out for the kind of a candlestick USD/JPY will form in the beginning of next week, as it will likely be very telling whether we will really see a double bottom and a new move to the upside.

Truth be told, such a long-term trend like the one we can observe on the daily, weekly and monthly time frames is not easy to reverse, so we might see one or two more tests of that level before the trend becomes bullish.

All that said, I have little doubt that there will be a reversal.