The USD/JPY has opened with a gap up signaling that the bulls are in full control. Price is approaching a major dynamic resistance, but a breakout is favored as the Yen is demolished by the Nikkei’s bullish movement.
The Japanese currency drops versus all its rivals on the short term, this could continue as the JP225 continues the upside movement. The Nikkei is pressuring a major horizontal resistance, a valid breakout above the 20058 static resistance will confirm a further increase and a Yen’s further depreciation.
Only another false breakout above the 20058 horizontal resistance will signal another leg lower and a Yen’s dominance. The Japanese banks are closed in observance of Respect-for-the-Aged Day.
The pair is driven by the technical factors, remains to see what will happen after the United States data will be released, but I don’t think that will have any significant impact.
The USD/JPY is trading in the green and is almost to hit the third warning line (WL3) of the descending pitchfork. Personally, I believe that if will touch it will break it because, a valid breakout will signal a further increase in the upcoming period.
Continues to move in range on the short term, so we’ll have a clear direction once will breakout from this range.
I’ve drawn a minor ascending pitchfork hoping that I’ll catch another leg higher, the rate could be attracted by the median line (ml) of this pitchfork. Temporary resistance could be found at the 38.2% retracement level as well.
A failure to reach the median line (ml) will signal a minor drop towards the lower median line (lml).
