EUR/JPY 15-Min Chart – Double Top Reversal | Bearish Price Action Setup
Published: April 22, 2025
Pair: EUR/JPY
Timeframe: 15-Minute (M15)
Strategy: Pattern Recognition + Price Action + S/R Flip
Bias: Bearish (Short Setup)
Pattern: Double Top (Reversal)
🧠 Technical Breakdown & Price Story
This chart captures a textbook Double Top pattern formation at a key resistance level on EUR/JPY, signaling a potential intraday bearish reversal. Let’s walk through the structure and psychology behind the move:
🔹 1. Uptrend Preceding the Pattern
Before the pattern forms, the price is seen in a sharp upward momentum move, a prerequisite for any valid reversal pattern. Bulls were in control, pushing price higher until they encountered heavy resistance around the 161.70–161.75 zone.
🔹 2. First Rejection – Top 1
Price tests the resistance zone and is aggressively rejected, forming the first swing high. This signals potential seller interest but is not enough on its own to confirm a reversal.
🔹 3. Pullback to Support (Neckline)
After the first rejection, the price pulls back to a support level near 161.42, forming what becomes the neckline of the pattern. Buyers try to step in again.
🔹 4. Second Attempt – Top 2
Price rallies again to the same resistance zone, testing the 161.70–161.75 area for a second time. But once again, buyers are unable to push through, leading to a second rejection, completing the Double Top pattern.
This symmetrical rejection of a resistance zone signals strong distribution – where smart money unloads positions.
🔹 5. Breakdown of Neckline
The final and most important piece is the break of the neckline support (161.42), which confirms the pattern and shifts the market structure from bullish to bearish.
📌 Key Levels
Type Price Significance
Resistance Zone 161.70–75 Double Top rejection zone
Neckline Support 161.42 Structural level for breakout confirmation
Take Profit 1 160.916 Measured move from pattern height
Stop Loss (SL) 162.349 Above pattern invalidation area
🎯 Bearish Trading Setup
🧾 Entry Options:
Breakout Entry: Enter short after a strong candle close below 161.42.
Retest Entry (preferred): Wait for price to retest the broken neckline (now resistance) and confirm rejection with a bearish candle.
🛡️ Stop Loss:
Place the SL above the double top highs (162.349) to allow room for minor volatility and false spikes.
🎯 Take Profit:
Based on the measured move method, the height of the pattern is projected down from the breakout point.
Target: 160.916 (confluence zone + technical target)
Optional Partial TP: At 161.10, a psychological level or reaction zone.
⚖️ Risk-Reward Ratio:
Depending on entry: 1:2 to 1:3
Tight structure provides an attractive RRR for intraday traders
🔎 Additional Confluences
Bearish Candlestick Formation around the resistance zone (e.g., rejections or engulfing patterns)
Support/Resistance Flip: Once support at 161.42 is broken, it becomes resistance
Market Structure Shift: Lower highs forming after second rejection
Volume (if added): Typically higher on second top and breakout
Fibonacci Confluence (if drawn from swing low to high) may line up with TP zone
🧠 Trader Psychology & Logic
The Double Top reflects a story of buyer exhaustion and institutional distribution.
Each failed attempt to break resistance increases the probability of reversal.
Smart money uses these areas to trap late buyers before driving the price down.
This pattern is common at the end of trends or during significant intraday reversals, making it an excellent opportunity for nimble traders to position short with defined risk.
📚 Summary of the Setup:
✅ High-probability Double Top pattern on M15
✅ Bearish momentum building with neckline break
✅ Ideal for scalpers and intraday traders
✅ Clear entry, SL, and TP for disciplined risk management
✅ Supports price action methodology without reliance on indicators
Published: April 22, 2025
Pair: EUR/JPY
Timeframe: 15-Minute (M15)
Strategy: Pattern Recognition + Price Action + S/R Flip
Bias: Bearish (Short Setup)
Pattern: Double Top (Reversal)
🧠 Technical Breakdown & Price Story
This chart captures a textbook Double Top pattern formation at a key resistance level on EUR/JPY, signaling a potential intraday bearish reversal. Let’s walk through the structure and psychology behind the move:
🔹 1. Uptrend Preceding the Pattern
Before the pattern forms, the price is seen in a sharp upward momentum move, a prerequisite for any valid reversal pattern. Bulls were in control, pushing price higher until they encountered heavy resistance around the 161.70–161.75 zone.
🔹 2. First Rejection – Top 1
Price tests the resistance zone and is aggressively rejected, forming the first swing high. This signals potential seller interest but is not enough on its own to confirm a reversal.
🔹 3. Pullback to Support (Neckline)
After the first rejection, the price pulls back to a support level near 161.42, forming what becomes the neckline of the pattern. Buyers try to step in again.
🔹 4. Second Attempt – Top 2
Price rallies again to the same resistance zone, testing the 161.70–161.75 area for a second time. But once again, buyers are unable to push through, leading to a second rejection, completing the Double Top pattern.
This symmetrical rejection of a resistance zone signals strong distribution – where smart money unloads positions.
🔹 5. Breakdown of Neckline
The final and most important piece is the break of the neckline support (161.42), which confirms the pattern and shifts the market structure from bullish to bearish.
📌 Key Levels
Type Price Significance
Resistance Zone 161.70–75 Double Top rejection zone
Neckline Support 161.42 Structural level for breakout confirmation
Take Profit 1 160.916 Measured move from pattern height
Stop Loss (SL) 162.349 Above pattern invalidation area
🎯 Bearish Trading Setup
🧾 Entry Options:
Breakout Entry: Enter short after a strong candle close below 161.42.
Retest Entry (preferred): Wait for price to retest the broken neckline (now resistance) and confirm rejection with a bearish candle.
🛡️ Stop Loss:
Place the SL above the double top highs (162.349) to allow room for minor volatility and false spikes.
🎯 Take Profit:
Based on the measured move method, the height of the pattern is projected down from the breakout point.
Target: 160.916 (confluence zone + technical target)
Optional Partial TP: At 161.10, a psychological level or reaction zone.
⚖️ Risk-Reward Ratio:
Depending on entry: 1:2 to 1:3
Tight structure provides an attractive RRR for intraday traders
🔎 Additional Confluences
Bearish Candlestick Formation around the resistance zone (e.g., rejections or engulfing patterns)
Support/Resistance Flip: Once support at 161.42 is broken, it becomes resistance
Market Structure Shift: Lower highs forming after second rejection
Volume (if added): Typically higher on second top and breakout
Fibonacci Confluence (if drawn from swing low to high) may line up with TP zone
🧠 Trader Psychology & Logic
The Double Top reflects a story of buyer exhaustion and institutional distribution.
Each failed attempt to break resistance increases the probability of reversal.
Smart money uses these areas to trap late buyers before driving the price down.
This pattern is common at the end of trends or during significant intraday reversals, making it an excellent opportunity for nimble traders to position short with defined risk.
📚 Summary of the Setup:
✅ High-probability Double Top pattern on M15
✅ Bearish momentum building with neckline break
✅ Ideal for scalpers and intraday traders
✅ Clear entry, SL, and TP for disciplined risk management
✅ Supports price action methodology without reliance on indicators
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.