The EUR/JPY has decreased today and now is pressuring a major dynamic support, could drop further if the Nikkei stock index will decrease in the coming days. The Yen has increased versus all its rivals, has appreciated significantly also against the USD, the Japanese currency could climb much higher if the JP225 will approach the 18936 static support in the coming days. The Nikkei stock index continues to move sideways, the price action has formed a triangle chart pattern, we’ll have a clear direction only when the rate will escape from this chart pattern.
A further Nikkei’s drop will force the Yen to climb much higher, so the EUR/JPY should drop further in the coming period. The Euro has decreased on the Euro-zone mixed data, the Italian Retail Sales have dropped by 0.5%, even if the traders have expected a 0.2% growth, the sales have decreased further after the 0.7% drop in the previous reading period. Moreover the Final GDP rose by 0.4%, matching expectations, has remained steady at 0.4% growth, but has failed to save the Euro from downside. The Gfk German Consumer Climate has decreased from 10.2 to 10.0 points, even if the traders have expected to see an increase to 10.3 points.
The rate has decreased after the retest of the broken median line (ml) of the minor ascending pitchfork and now is challenging the upper median line (UML) of the major descending pitchfork, a valid breakout below this downside obstacle followed by a retest will open the door for more declines, could drop even to reach the 61.8% retracement level and also the lower median line (lml) of the ascending pitchfork. Technically, the rate is expected to drop further in the coming period after the failure to stay above the median line (ml) of the ascending pitchfork, could drop along the upper median line (UML) if will fail to stabilize below this major dynamic support.
Technically should be attracted by the lower median line (lml) of the ascending pitchfork after the failure to approach and reach the upper median line (uml) of the ascending pitchfork, right now only the fundamental factors could turn the rate to the upside again.