The USD/JPY has decreased significantly today and has reached fresh new lows, has slipped lower because the Nikkei stock index has plunged in the early morning, the index has opened with a gap down and could drop much deeper in the coming period because the rate wasn’t able to stabilize above the 16931 broken resistance. The JP225 level has recovered in the last hours,but remains under massive selling pressure, the index has increased only to try to close the morning gap. If the Nikkei will make new lows, then the Yen will be pushed much higher versus all its counterparts.
The Japanese Core Machinery Orders have increased by 4.9% in July, has come surprisingly because the economists have estimated a 2.8% decrease, the indicator has increased less compared to the 8.3% in June, while the PPI has dropped by 3.6%, more compared to the 3.5% forecast, but less compared to the -3.9% from the previous reading period, the economic indicator continues to stay in the negative territory after May 2015, the Yen has ignored to dreadful data and has appreciated versus its rivals. Moreover the Prelim Machine Tool Orders have decreased by 8.4% in August, however, we had a poor economic calendar today, we had some movement in the afternoon after the FOMC Member Brainard Speaks, but unfortunately the USD remains under selling pressure because the USDX has plunged again after the last week growth, the index has found strong resistance on Friday and now seeking for strong support.

You can see that the rate has decreased and ha erased the Friday’s gains and now could approach again the 50% retracement level, where he could find support again. The rate is expected to find support also at the 100.00 psychological level, the price is moving sideways on the short term, has started to make higher lows, signaling that the sentiment could change. The price could decrease on the short term because has failed to stay inside the minor ascending pitchfork, has failed also the to approach the median line (ML) of the medium term descending pitchfork, the perspective remains bearish on the short term as long as the rate is located below the median line (ML), the sentiment will change only when the rate will have enough energy to climb above the median line.

The rate has dropped today and could approach the lower median line of the short ascending pitchfork, could find temporary support at this level, could bounce back again from this minor support level and could resume the upward movement inside the short ascending pitchfork.

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