USD/JPY posted little gains today as the USDX and Nikkei have changed little as well. Price increased and is struggling to resume the Friday’s bullish candle. Is located above the 110.80 level and is approaching the 111.04 Friday’s high.
The Yen decreased as the Nikkei stock index is trading higher, the index retested the 20058 major static resistance today. JP225 continues to move sideways, is narrowing on the Daily chart, but I hope that we’ll have a clear and significant move very soon.
Nikkei has developed a minor symmetrical triangle, but remains to see the breakout direction because a drop towards the 19700 level will force the Yen to dominate the currency market again. The Japanese Leading Indicators indicator was reported at 106.3%, higher versus the 106.02%, but less versus the 104.6% in the former reading period.
Price increased and could reach and retest the 38.2% retracement level in the upcoming days if the USDX and the Nikkei stock index will increase. Continues to move in range between the 23.6% and the 50% retracement level, is trapped within a symmetrical triangle, so we’ll have a clear direction only after a valid breakout from the chart pattern.
USD/JPY failed to reach and retest the downside line of the symmetrical triangle, signaling that the bulls are sill in the game. A large rebound will be confirmed after a breakout above the WL3, while a broader drop under the warning line (wl1) of the minor ascending pitchfork.
