The EUR/JPY increased and resumed the Friday’s bullish candle, but could be only a temporary rebound because is under selling pressure. Price retested a  broken dynamic support and now is somehow expected to drop again in the upcoming period. Right now we have to wait for a confirmation that will drop further, we may have a great selling opportunity if will start to decrease again.

Price has climbed higher since Friday as the Nikkei stock index has managed to rebound after the massive drop and could approach and retest the 19699 static resistance before will resume the downward movement. Technically, the JP225 is somehow expected to drop towards the 18936 static support, a further drop will force the Yen to dominate the currency market. Personally, I don’t see a major increase at this moment, the rebound should be temporary, could retest some resistance levels before will plunge again.

The European currency increased today, even if the Euro-zone Industrial Production dropped by 0.6% in June, more versus the 0.4% estimate. The economic indicator plunged after the 1.2% in the former reading period. Remains to see what will happen tomorrow because the Yen is located near important levels versus all its rivals.

Price rebounded after the false breakdown below the 38.2% retracement level and now has retested the upper median line (UML) of the major ascending pitchfork. A rejection from here will signal a major drop in the upcoming weeks.

Is somehow expected to drop after the failure to stabilize above the UML and after the breakout from the Rising Wedge pattern, but we’ll know for sure only if will close below the 38.2% retracement level. We’ll have a selling opportunity if the rate will stabilize below the 38.2% retracement level, the next downside targets will be at the 50% Fibonacci line (ascending dotted line) and much lower at the median line (ML) of the major ascending pitchfork.

Only a valid breakout above the UML will invalidate a further drop, this scenario will take shape if the Nikkei’s corrective phase is completed, which is hard to believe.