Forex: USD/JPY double roof materializing at 78.6% Fibo

FXstreet.com (San Francisco) - USDJPY is again looking top heavy as key 78.6% Fibonacci retracement resistance at 82.65 (84.16/77.12 decline) continues to attract sellers; the market appears now to be carving out a double top formation at mentioned resistance.

From Valeria Bednarik, Chief Analyst at FXstreet.com: "Failure to overcome 82.80 past Friday has let the pair with a double roof around the area, which may advance a deeper downward correction on the days to come: the neckline of the figure, comes at 81.67, past week low and a break below that level, may see the pair returning near 80.80 strong static support zone."

Ms. Bednarik also says that the short-term bias will remain bearish so long as the market trades below 82.30. Should the downward bias persist in the sessions ahead, the analyst identifies support levels at 81.80, 81.50 and 81.10, while bullish targets lie at 82.30, 82.60, and above the cited 82.80 mark, at 83.60 (Aug 24 2010 low). USDJPY now stands at 82.12.