The EUR/JPY has edged higher aggressively and has managed to hit new highs, is trading much above the 120.34 yesterday’s high. The European currency has increased significantly versus the Yen since yesterday, the Yen was demolished by the Nikkei’s jump, the indicator has opened with a gap up in the yesterday’s trading session, has failed to close this gap, signalling that could climb much higher.

The JP225 has rallied today and no now is located much above the 19150 level, could climb much higher on the short term, this situation will send the Yen much lower against its rivals. The Japanese currency has dropped significantly also versus the greenback and versus the Cable. The Nikkei has failed to stay lower after an important breakdown, however, remains under some selling pressure on the short term despite the current rebound.

The Yen has dropped also if the Japanese SPPI indicator has increased by 0.8% in March, beating the 0.7% estimate, actually has remained steady at 0.8% growth for the second month in March. On the other hand, the European currency has received support from the Euro-zone data.

We have a powerful bullish momentum, which has managed to break above the median line (ml) of the ascending pitchfork, the upside movement will resume if will close above this obstacle. I’ve said in the previous analyze that the rate could climb to reach the median line (ml) after the failure to close right on the lower median line (lml). Has managed also to escape from the minor descending pitchfork’s body, we can have also a buying opportunity if the rate will close above the broken median line (ml) and if will come back to retest this level. However a false breakout above this dynamic resistance will send the rate down again.

Is very important to see what will happen on the JP225 index, a further increase will weaken the Yen even more, so the pair should increase further, the downside was invalidated when the rate has failed to stabilize  under the upper median line (UML) of the major descending pitchfork.