The USD/JPY has decreased today after the yesterday’s minor rebound, but has failed to reach the 111.58 yesterday’s low and has climbed again above the 112.00 psychological level, could bounce back on the short term if will stabilize above this level.
The Yen has increased somehow surprisingly today as the Japanese economic data have come in worse than expected, the Japanese currency was supported only by the Nikkei stock index which has slipped lower after the yesterday’s rebound. The USD/JPY has dropped also because the USDX has failed to resume the last day’s bounce back, the index has found temporary support right above the 99.12, has increased as much as 100.73 level in the yesterday’s session, but the rate has failed to reach this level again today and now is located near the 100.30 level. The JP225 continues to move sideways on the short term after the failure to jump above the 19700 psychological level, I want t remind yo that the perspective remains bullish, so a bullish momentum could occur anytime.
The USDX could decrease even to retest the 99.84 static support before will start to increase again, the index could move sideways in the coming weeks, could try to recapture more directional energy before will start a broader rebound.
The currency pair has decreased and has ignored the Japanese economic data, the Economy Watchers Sentiment decreased from 51.4 to 49.8 points in January, despite that the traders have expected to see an increase to 51.9 points, moreover the Current Account has decreased from 1.80T to 1.67T, has disappointed because has come much below the 1.71T estimate. The Japanese Bank Lending indicator has surged only by 2.5%, less versus the 2.7% forecast and less than the 2.6% growth in the previous reporting period.

USDJPYdaily

The rate has decreased today and has slipped below the first warning line (wl1) of the ascending pitchfork, but has failed to reach the 38.2% retracement level. Now has increased a little and is trading right above the warning line (wl1) of the ascending pitchfork, a rejection here will send the rate higher again, we still need a confirmation that the price will turn to the upside again. The corrective phase could be completed if the price will stay above the 38.2% retracement level, has touched this static support in the yesterday's trading session, but has jumped much higher till the end of the day. Will resume the downside movement only if will drop and will stabilize below the 38.2% retracement level, could decrease further after the several false breakouts above the WL1, the next major downside target will be at the first warning line (WL1) of the previous descending pitchfork.

USDJPYh4

I've added a minor descending pitchfork on the short term, which encapsulate the downside movement, you can notice that the price is trading above the median line (ml) of the minor descending pitchfork. Looks like that the price is losing bearish momentum, the behavior will change on the short term only if will start to make higher lows.

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