The USD/JPY is trading in the green on the short term and tries to extend the latest gains. Price is approaching the 113.25 yesterday’s high and a strong dynamic resistance level. Technically, it should reach new highs in the upcoming days as the USDX climbs higher and because the Yen is punished by the Nikkei’s potential further increase.
The currency pair continues to be trapped within an extended sideways movement, we’ll see how will react when will reach the upside line of this pattern.
The Nikkei stock index rallied aggressively in the yesterday’s session and closed the morning gap down. The index continues to move somehow sideways on the daily chart, but continues to stay above the 20320 previous highs. A further Nikkei’s increase will force the Yen to lose more ground versus all its rivals.
The BOJ Kuroda’s speech may bring some action on the USD/JPY later, so you should be careful.
Price increased and managed to stay above the median line (ml) of the minor blue ascending pitchfork. Could come to retest the first warning line (wl1) of the black ascending pitchfork. The next major upside target will be at the 23.6% retracement level, only a valid breakout will confirm a further increase in the upcoming period. Technically is somehow expected to stay above the median line (ml) of the blue ascending pitchfork. Only a failure to stabilize above the broke dynamic resistance will signal a minor drop.
