Price rallies aggressively as the Yen is demolished by the Nikkei’s impressive jump. GBP/JPY is trading in the green and looks motivated to climb much above the 143.00 psychological level. Today’s rally invalidated a crucial breakdown, we still need a confirmation that will increase further in the upcoming period.
The Yen drops versus all its rivals as the JP225 started an aggressive bullish momentum, has opened with a gap up today as well, signaling that the bulls are in full control. The index is trading above the 19700 major static resistance and could climb towards the 20058 long term upside obstacle.
I want to remind you that the Nikkei is still under massive pressure despite the current rebound, could drop anytime again as long as stays under the 20058 horizontal resistance.
You should be careful later as the UK is to release high impact data, the CPI is expected to increase by 2.7% in the last month, more versus the 2.6% growth in the former reading period, while the Core CPI could increase by 2.5%, beating the 2.4% in June. The RPI, HPI, PPI Input and the PPI Output will be released as well.
Looks like we had a false breakdown below the red uptrend line, a retest of this obstacle will signal a further increase in the upcoming period. The rebound is natural after the failure to reach the lower median line (lml) of the minor descending pitchfork.
A bounce back at least till the median line (ml) was expected, right now should climb to retest the upper median line (uml).