The rate increased a little today and tries to stay above the broken resistance level. It remains to see what will happen as the pair remains under major selling pressure. The pair continues to move sideways on the short term.

The Yen has started to drop again as the Nikkei stock index has increased again. The JP225 increased and is approaching a very strong dynamic resistance. Personally, I believe that the Nikkei is still exhausted, even if the perspective remains bullish.

It remains to see what will happen later because the UK is to release more high impact data. The Yen dropped even if the Japanese Current Account increased from 0.96T to 177T, beating the 1.62T estimate, while the Bank Lending rose by 2.1%, beating the 1.9% estimate and the 2.0% growth in the former reading period. The Economy Watchers Sentiment increased from 48.9 to 49.0 points, but less versus the 49.2 estimate.

On the other hand, the UK’s Manufacturing Production dropped by 0.1%, less versus the 0.2% estimate and versus the 0.2% drop in the former reading period, the Goods Trade Balance dropped to -12.3B, more versus the -11.2B estimate, while the Industrial Production rose by 0.1%, matching the 0.1% estimate. The Construction Output dropped by 2.3%, more versus the 2.1% estimate.

The rate bounced back and now is located above the lower median line (LML) of the minor ascending pitchfork. You should know that this rebound could be only temporary and the rate could drop again. Another drop below the LML will signal a further drop and you should go short on this pair again.

However, we may have a significant upside movement after the false breakdown below the LML and only if the Nikkei stock index will increase further in the upcoming weeks. The Pound increased a little also versus the USD and versus the Euro, but he needs a strong support to start a larger rebound.