The currency pair has dropped in the start of the week and resumes the Friday’s bearish candle. USD failed to hold the pair higher even if the dollar index has managed to climb higher. The minor retreat is natural after the rejection from an important confluence area, we’ll see what will happen because has reached an important horizontal support.
Price continues to move in range on the short term, but I really hope that we’ll have a clear direction very soon because cannot move sideways forever.
The Yen increases as the Nikkei stock index has found strong resistance and now slips lower. The JP225 was expected to drop a little after the amazing rally, I’ve said in the previous reports that the index should drop to retest the 20058 static support (resistance turned into support).
Technically, the JP225 is expected to climb much higher in the upcoming period after the breakout above the 20320 former high despite a minor drop.
Price failed to take out the resistance from the confluence area formed at the intersection between the first warning line (wl1) of the ascending pitchfork with the median line (ml) of the blue ascending pitchfork.
Now is pressuring the 38.2% retracement level, a valid breakdown will confirm a further drop towards the WL3 and towards the 250% Fibonacci line.
