The USD/JPY increased today and resumed the bullish momentum. Price reached another upside target, we’ll see in the upcoming days how will react because right now is premature to say that we’ll have a valid breakout or not.

The pair decreased a little in the last hours, even if the USDX and the Nikkei are located at fresh new highs. The Yen depreciated further versus its rivals as the Nikkei has managed to resume the yesterday’s minor bullish candle and has jumped much above the 21930 previous high and climbed as much as 22126 level where has found temporary resistance.

The JP225 is attracted by a very strong dynamic resistance line where he could find strong resistance again. On the other hand, the USD increased sharply versus its rivals as the USDX has finally managed to make a valid breakout above the 93.81 static resistance. The National Core CPI increased by 0.7%, matching expectations and the 0.7% growth in the former reading period, while the Tokyo Core CPI surged by 0.6% in October, exceeding the 0.5% estimate and the 0.5% growth in the former reading period.

Remains to see what the US data will bring later, the Advance GDP may increase by 2.6%, less versus the 3.1% estimate, while the Advance GDP Price Index is expected to increase by 1.7%, more versus the 3.1% estimate.

The rate climbed above the median line (ml) of the ascending pitchfork and has finally reached the 23.6% retracement level. Price climbed above the mentioned static resistance level, but failed to stay there and now is retesting the long term 23.6% retracement level and could retest also the median line (ml) before will climb much higher.

Technically, it looks like that we’ll have a valid breakout above the median line which will confirm a further increase. Resistance can be found at the fourth warning line (WL4) as well, but a valid breakout above the 23.6% retracement level will signal a breakout above the WL4 as well.