The currency pair has increased sharply today and has resumed the upside momentum, has managed to break above an important resistance level, signalling that the rate remains strongly bullish. The USD/JPY has reached fresh new highs, the rate wasn’t so high from July 2016, could increase much higher if the USDX will resume the bullish momentum. The greenback climbs higher versus all its rivals as the USDX has edged higher today, the index is trading above the 99.00 psychological level and is very close to reach the 99.12 previous high, we’ll see how will react when will hit this level.
The Yen has also decreased because the Japanese data have failed to impress today, moreover the Nikkei stock index has rallied and has managed to reach new highs, has jumped above the 17489 previous high, signaling that the index will resume the upside movement and will push the Yen much lower versus its rivals.
The Japanese Core Machinery Orders have fallen by 3.3% in September, more versus the 1.8% estimate, the economic indicator continues to drop after the 2.2% drop from August, while the M2 Money Stock rose by 3.7%, exceeding the 3.6% estimate, has exceeded also the 3.5% growth from the last reading period. Moreover the Prelim Machine Tool Orders have dropped by 8.9% in October, has fallen much versus the 6.3% decrease since September.
On the other hand, the greenback has received a helping hand from the Unemployment Claims report, the Initial Claims have decreased again, from 265K to 254K jobs in the previous week, the indicator has reached the lowest level of the last 4-weeks. The US is to release also the Federal Budget Balance, which is expected to drop to -81.9, but I don’t believe that will influence the price movement.


The price has increased sharply and has jumped above the 38.2% retracement level, the level represents a very strong resistance level, remains to see if we had a false breakout or the rate will close the day above the Fibonacci level. I want to remind you that the major upside target is at the upper median line (UML) of the medium term descending pitchfork, the rate could reach this level in the coming days if the USDX will make new highs. The rate has managed to climb again inside the ascending pitchfork’s body, signalling that the bulls could fight hard to push the rate also towards the median line (ml) of the minor ascending pitchfork, we’ll have a larger rebound only if the price will jump and will stabilize above the upper median line (UML) of the descending pitchfork.


The rate has retreated a little in the last hour, has slipped again below the 38.2% retracement level, could come to retest the lower median line (lml) of the ascending pitchfork before will resume the upside movement. The rate has increased sharply after the yesterday’s morning drop, you can see that the price has found strong support at the median line (ML) from the Daily chart and above the first warning line (wl1) of the ascending pitchfork.

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