The EUR/JPY moves higher very quick as the Nikkei stock index continues to stay higher. The JP225 has show some exhaustion signs on the short term, so remains to see if will manage to stay above the 27718 today’s low. A Nikkei’s drop will force the Yen to appreciate versus all its rivals, but is premature to talk about this as long as it stays in the buyer’s territory.

EUR/JPY escaped from an extended sideways movement and seems determined to climb much higher in the upcoming period.

Technically, it should climb towards fresh new highs after another failure to take out a major dynamic support. The Yen dropped significantly as the Bank of Japan maintained the BOJ Policy Rate unchanged at -0.10%.

I’ve added the Nikkei’s chart to show you why the Yen could still increase in the upcoming period. You can see that the index has failed to come back above the lower median line (LML) of the ascending pitchfork. Remains to see what will really happen in the upcoming hours because it could still jump above the mentioned resistance level if will stabilize above the third warning line (wl3) of the former descending pitchfork.

Only a drop below the wl3 of the descending pitchfork will confirm a larger drop and a Yen’s appreciation.

The rate has increased and has jumped above the 134.49 former high and seems motivated to climb towards fresh new highs. It has managed to breakout from the minor extended sideways movement and should climb towards the median line (ml) of the blue ascending pitchfork after the failure to reach and retest the lower median line (lml).

Price failed to retest the upper median line (UML) of the major red ascending pitchfork signaling that it should jump higher again.  I’ve said in the last weeks that only a valid breakdown below the UML will signal a larger drop and it will take out the support from the lower median line (lml) of the blue ascending pitchfork.