FX.co ★ Technical analysis on USD/JPY for October 23, 2014

The pair made a near-term minor top at 172.90 levels, started moving lower. In yesterday's session the pair fell below the 200Dsma, but at the end of the day well managed to close above that. Today, the pair held the same support, moving inch higher. In the h4 chart we can see a large distribution pattern at 173.00 levels. Until the pair closes above 173.00 bears will try to take the pair towards 170.00 and 169.00 again. On a weekly basis, the 50Wsma has been providing enough support not to extend its fall. In case, if the pair closes below 171.08, we can expect a steep fall towards 160.00 levels. This week, as of now the pair made a double top at 173.03 levels. The trading pattern is framed between 173.03-171.08. Sell on every rise, until the pair closes above 173.03 on a weekly basis. We can expect a oneside direction either up or down in the next week or the week after next.