The USD/JPY increased on Tuesday, but failed to reach the 113.25 last week’s high. Continues to pressure the median line (ml) of the blue ascending pitchfork. Technically, has shown some exhaustion signs in the last days after the failure to take out a major dynamic resistance.
Price increased in the last three days as the Yen was punished by the Nikkei’s impressive rally, it should have climbed much higher today as the index has jumped above the 20498 previous high and reached the 20636 level. The USD/JPY upside momentum was paused by the USDX’s decrease, the index has found strong resistance right above the 93.81 horizontal resistance and now is trading much below this major upside obstacle. USDX maintains a bullish perspective on the short term, but only a valid breakout above the 93.81 will confirm a further increase in the upcoming weeks.
Price is pressuring the median line (ml) of the ascending pitchfork, another false breakout will send the price towards fresh new lows in the upcoming days. Only a valid breakout above this obstacle could confirm a further increase towards the 23.6% retracement level.
A USDX’s drop could signal a Nikkei’s minor decrease as well, we’ll see what will happen because tomorrow we have a crucial day for the USD. The US is to release high-impact data, while the FED Chair Yellen will deliver a speech at the Federal Reserve Bank of St. Louis.
