The USD/JPY has increased today and has resumed the yesterday’s bullish candle, but remains to see what will happen in the upcoming hours because most likely the fundamental factors will take the lead and will drive the price.
Maybe we’ll be better to stay away from this pair right now because we don’t have a clear direction, personally I’m expecting for a fresh trading signal before I’ll take any trading decision. The greenback has dragged the price higher as the USDX continues to stay near the 97.32 yesterday’s high, technically the index should drop further in the upcoming days after the false breakout above the 97.59 static resistance. The dollar index is located below a broken dynamic support, may have come back only to retest this line before will drop further.
You’ll have to be careful in the upcoming hours because the United States data have brought a high action on the currency market, the greenback has taken a hit from the poor economic data, the USDX has started to drop aggressively an has taken out the support from the 96.79 previous low, looks too heavy to be stopped, so a further drop is expected, this situation will send the greenback much lower versus all its rivals.
The USD has taken a hit from the Non-Farm Employment Change, which has come in much worse than expected, was reported at 138K jobs, much lower versus the 181K estimate, much lower also versus the 211K estimate, while the Average Hourly Earnings increased by 0.2% in May, matching expectations. Moreover the Trade Balance has come in worse as well, the deficit has increased from 43.3B to 47.6B, has come in much worse versus the 45.5B estimate.
The USD has supported only by the Unemployment Rate, which has decreased unexpectedly, from 4.4% to 4.3% in the last month, even if the traders have expected to see a 4.4% rate.
On the other hand, the Yen has dropped aggressively as the Nikkei stock index has edged higher and has jumped much above the 20058 static resistance, the index has resumed the yesterday’s rally and looks determined to approach and reach new highs in the upcoming period. The index has retreated in the last hours, so maybe will be better to wait to see if will stabilize above the mentioned broken resistance.
The Yen fallen despite the mixed Japanese data, the Consumer Confidence has increased 43.2 points to 43.6 points, matching expectations, while the Monetary Base increased only by 19.4%, less versus the 19.6% estimate.

Price has increased in the morning as the USDX has tried to resume the yesterday's bullish candle, you can see that has climbed above the 38.2% retracement level and above the sliding line (descending dotted line), a valid breakout above the confluence formed by these two level would have accelerated the rally. The current drop has invalidated a potential bullish momentum, we'll have a selling opportunity if the if the rate will close below the second warning line (WL2) of the former descending pitchfork and if will retest this line. A buying opportunity if off the table right now, price was somehow expected to drop further after the breakout below the lower median line (lml) of the ascending pitchfork.

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