AUD/JPY Reverses Direction on Double Top Formation

The recent uptrend on the daily AUD/JPY chart was in no way a very long-term one, running from late November 2017 through early January 2018. In just a few days it has formed a perfectly valid double top pattern with two distinctive peaks on January 8 and January 23. The most recent price action (Friday) suggests significant weakness in the Aussie and quite some strength in the Japanese yen.
You can see the double tops marked with the upper yellow horizontal line. The bottom yellow line marks the “neckline” of the formation. I will use a 10% buffer to enter this trade and avoid fakeouts. My potential entry is marked with the cyan line on the chart below. My target (the green line) is at 100% of the pattern’s height below the “neckline.” I will set my stop-loss level to the high of the breakout candle or to the preceding high if the former is trading mostly below the lower border. You can click on the image below to see a full-sized screenshot:

I have built this chart using the ChannelPattern script. You can download my MetaTrader 4 chart template for this AUD/JPY pattern. You can trade it using my free Chart Pattern Helper EA.
Update 2018-02-05 11:12 GMT: The entry has been triggered during the early Sunday market opening at 23:09 GMT. The short position opened at 87.016 with stop-loss at 87.957 and take-profit at 85.326. Unfortunately, the currency pair seems to be ready to return back above the “neckline”:

Update 2018-02-06 12:08 GMT: Despite a rather dangerous attempt to reverse its decline, AUD/JPY spiked down following the poor Aussie fundamental data and has hit my take-profit level at 1:56 GMT today:

If you have any questions or comments regarding this double top on the AUD/JPY chart, please feel free to submit them via the form below.

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