The EUR/JPY has increased in the morning as the Yen was weakened by the Nikkei’s increase, the index is still trading in the green on the short term, could climb even higher if will have enough energy to close above the 19320 yesterday’s high. The Nikkei has shown some exhaustion signs in the yesterday’s trading signal, the Yen will increase again, only if the index will slip lower again.

The pair is challenging a major dynamic resistance, has jumped above the upside obstacle, but this could be a false breakout if the Euro will take a hit from the ECB later. Price has decreased a little as the Euro is shaking ahead of the Minimum Bid Rate release, the rate is expected to remain steady at 0.00%, the ECB Press Conference will bring high action on this pair, remains to see the direction. Maybe the Europen Central Bank President will have a neutral speech today, even if there are some rumors that the ECB could take action in June.

The Euro slipped lower also because the Euro-zone data have failed to impress in the European trading session.

Is this a false breakout? Everyone is wondering if the rate will have enough energy to resume the upside movement. You can notice that has jumped above the median line (ML) of the ascending pitchfork, but has failed to stay there, has touched also the 50% retracement level, but wasn’t able to close near this major upside obstacle.

A retest of the median line (ML) of the ascending pitchfork, followed by a decrease will attract more bears, which are expected to take the lead again on the short term. We’ll see what will happen later because the fundamental factors will move the price, price maintains a bullish perspective on the short term  after the failure to stabilize below the upper median line (UML) of the major descending pitchfork.

A disappointment later could send the rate towards the 118.38 static support, maybe will need to recapture more directional energy before will try to finally break and close above the 123.30.