EUR/JPY registered an amazing jump
The currency pair increased sharply in the last days and managed to hit fresh new highs, signalling that the bulls are in full control on the short term. Has managed to climb much above the 130.00 psychological level, cold climb much higher as the Yen is under massive selling pressure versus all its rivals.
The Japanese currency is trading in the red as the Nikkei stock index increased further on Tuesday and closed much above the 20058 broken resistance, however the index could come back down to retest the mentioned broken upside obstacle before will try to approach the 20320 previous high. We’ll see how the Yen will react after the release of the Japanese data, the PPI is expected to increase by 2.1% in June, could remain steady at 2.1% for the third month in June, while the Tertiary Industry Activity may drop by 0.5% in May, actually could plunge after the 1.2% growth in the former reading period.
Price rallies and looks unstoppable on the daily chart, is trading much above the broken upper median line (UML) of the major ascending pitchfork and above the median line (ml) of the minor ascending pitchfork. The next upside target will be at the 150% Fibonacci line (ascending dotted line), we may have a minor retreat before will try to reach this level, could come down to retest the median line (ml) in the upcoming days. A minor retreat will be natural after the impressive rally.
AUD/USD should profit by USDX’s drop
The Aussie managed to recapture significant ground versus the greenback in the yesterday’s trading session and is expected to climb much higher if the USDX slides further in the upcoming days. The dollar index taken a hit from the fundamental factors in the afternoon, that’s why the USD has dropped against all its rivals.
Price continues to move upwards within the minor ascending pitchfork’s body, the next upside target remains at the 0.7675 level and higher at long term downtrend line. Technically is expected to increase further after the failure to reach the UML again, an oversold will be confirmed only if the rate will escape from the ascending pitchfork’s body.
The Australian Westpac Consumer Sentiment will be released later, a positive report will boost the Aussie.
NZD/USD squeezed a little
The pair increased a little in the last hours and recovered after the impressive drop, is still under selling pressure on the short term, despite the USDX’s sell-off. Could decrease further and could test and retest some important support levels before will climb higher again.
Has edged lower, but found strong support at the median line (ml) of the minor descending pitchfork, much above the second warning line (WL2) of the major descending pitchfork. However, could slip lower along the median line (ml) till will reach the confluence area formed between the wl4 with the median line (ml).
