USD/JPY Price Analysis: Off session highs, hourly chart shows a double bottom pattern

• USD/JPY has carved out a double bottom pattern on the hourly chart. 
• A move above 107.43 is needed to confirm a bullish breakout.

USD/JPY is currently trading at 107.24, having faced rejection at 107.36 early Friday. 

The pullback from session highs puts a question mark on the sustainability of the gains in the S&P 500 futures, The Shanghai Composite, and stocks in Hong Kong. This is because the anti-risk yen usually drops during bouts of an uptick in the stock markets. 

From a technical analysis perspective, the immediate bias would remain neutral while the pair is held below the hourly chart double top neckline resistance at 107.43. A convincing move above that level would open the doors for 108.19 (target as per the measured move method). 

On the downside, 106.67 (double bottom low) is the level to beat for the sellers. 

Hourly chart

Trend: Bullish above 107.43

Technical levels