USD/JPY strategy: Short a potential double top - ForexLive

Trump victory and the resulting speculation that Trump would ‘spend till end’ led to a sharp rally in the USD and a sell-off in the traditional safe havens like gold and funding currencies like JPY and EUR.

The Dollar-Yen pair had dropped to a low of 101.19 on US Presidential Election day only to recover losses and rise to 108.54; the highest level since early June.

The question faced by forex traders is whether the blast higher is a ‘hope trade’ or has substance to scale further heights.

To answer the query, we have Ryan Littlestone, Director at ForexLive who dissects the action in the Dollar-Yen pair over the last one week and says traders can attempt shorting the pair on a potential double top formation, although he states there is no point going against the bullish momentum as of now.

Watch the video to know Littlestone’s trade of the day. The segment is hosted by Tip TV's Zak Mir and Alan Green, COE of Brand Communications

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