USD/JPY: Double Top at 158 Signals Reversal Risk - Key Trading Levels

USD/JPY is testing critical resistance near 158.00, forming a bearish double top pattern that suggests potential reversal after the pair's recent uptrend. The technical formation indicates selling pressure is building as bulls fail to push through the 158.00 psychological barrier for the second time. The Bank of Japan's continued dovish stance has limited yen strength, but the double top pattern warns of exhaustion in dollar buying momentum. Key support levels to watch include 156.50 (neckline of the pattern) and 155.00 (50-day moving average). A confirmed break below 156.50 would validate the reversal pattern, potentially targeting 154.00-154.50 zone. Conversely, a decisive break above 158.20 would invalidate the bearish setup and could trigger fresh buying toward 160.00. Traders should monitor upcoming US economic data and any shifts in BOJ policy communication for catalysts that could determine the pair's direction from this critical juncture.