The currency pair has increased sharply today and has reached fresh new highs, has jumped much above the 107.00 psychological level. Price is strongly bullish as the USDX has edged higher today and has resumed the upside momentum, the index has managed to jump even above the 100.00 psychological level, remains to see if will have enough energy to stay higher or will slip lower on the short term. We have an aggressive rally on the USDX, the rate has climbed above the 99.84 static resistance today, but right now is located below this major upside target, however the perspective remains bullish as long as the rate is trading above the 99.12 static support, so the index could increase further even if we’ll have a minor retreat these days.
The Yen continues to decrease versus its rivals even if the Japanese data have come in mixed, the currency goes down also because the Nikkei stock index has reached new highs, the index has managed to jump above the 17616 Friday’s high and is approaching the 17774 horizontal resistance.
The Japanese Prelim GDP 0.5% in the third quarter, exceeding the 0.2% estimate and also the 0.2% growth from Q2, while the Prelim GDP Price Index has decreased by 0.1%, even if the currency traders have expected a 0.3% growth, the indicator has plunged compared to the 0.7% growth from the previous reading period. Moreover the Revised Industrial Production has increased by 0.6%, beating the 0.0% prediction, but unfortunately the indicator wasn’t able to save the Japanese Yen from downside.
The USD has increased sharply even if we don’t have any significant figures from the United States, the currency pair could be influenced by the US Retail Sales report, the numbers could bring some volatility, so you should be careful.

USDJPYd-1

The rate has managed to stay above the 38.2% retracement level on Friday, so the perspective was bullish for today, you can see that has rallied and has jumped above the upper median line (UML) of the medium term descending pitchfork, we’ll see if this will be a valid or a false breakout, the price is struggling to approach and reach the median line (ml) of the ascending pitchfork, where is expected to find temporary resistance, I want to remind you that the perspective remains bullish as long as the rate is trading inside the ascending pitchfork’s body. We’ll have a larger upside movement if the rate will have enough energy to escape from the major descending pitchfork’s body.

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