The currency pair drops further on the short term and should approach and reach other downside targets in the upcoming days.  The USD continues to be sluggish on the short term as the USDX slipped lower again after the Monday’s rally. USDX has come back down to retest critical support levels, a rejection from here will send it towards fresh new highs. Only a further USDX’s increase will help the greenback to appreciate versus all its rivals.

Remains to see what will really happen tonight after the FOMC Meeting Minutes, this event could shake the price, so you should be careful because a high volatility could ruin your account.

The Yen increased as the Nikkei has decreased a little again today, you can see on the Daily chart that the index has come back after the Friday’s drop and now is pressuring the lower median line (LML) of the ascending pitchfork again.

The Nikkei has found strong support right above the second warning line (wl2) of the descending pitchfork signaling that it could jump higher again.  A valid breakout above the LML will signal a breakout attempt above the third warning line (wl3) as well. You should know that a further Nikkei’s increase will force the Yen to drop on the short term versus all its rivals.

The currency pair dropped and seems motivated to reach the 38.2% retracement level in the upcoming hours.  Price has broken below the 250% Fibonacci line and has retested it, signaling that the bears will push the rate much lower in the upcoming period. I’ve said in the last weeks that the rate could be attracted by the lower median line (lml) of the minor ascending pitchfork in the upcoming period after the false breakouts above the median line (ml). I’ve also said that it should breakdown below the 250% Fibonacci line if will touch it.

Will be very important to see what will really happen when will hit the 38.2% retracement level, a breakdown will confirm a drop towards the lower median line (lml).