Double bottom forms on USD/JPY

USD/JPY remains within a bullish trend on the daily chart, although prices have retraced -9.4% from its 24-year high. Prices have held above the 137.70 area and produced a double bottom pattern, with a bullish divergence on the stochastic oscillator. Two small bullish hammers have also formed to suggest the markets is trying to form a swing low. The bias remains bullish above the recent low, and we anticipate a break above 140 and an initial move to 142.