GBP/JPY has dropped significantly since Thursday and now is pressuring a dynamic support. It has found a temporary resistance, so, the current drop could be normal after the last bullish momentum. Technically, the rate maintains a bearish perspective on the short term, it could drop again if it will fail to stabilize above the broken dynamic resistance.

Price has decreased as the Nikkei stock index has slipped lower on the short term. So, a JP225 further drop will force the Yen to dominate the currency market. Right now you should stay away and wait for a fresh trading signal.

Yen increased even if the Japanese Unemployment Rate has increased unexpectedly from 2.4% to 2.5%, even if the specialists have expected to see the rate steady at 2.4%. The Prelim Industrial Production dropped by 0.1%, despite the 0.3% growth expectation.

The Nikkei has failed to reach and retest the median line (ml) of the ascending pitchfork and now it was almost to reach the 50% Fibonacci line. It has opened with a huge gap down, but the rate has managed to close the gap down. I’ve told you in the previous days that the index could drop significantly if it will fail to make a valid breakout above the median line (ml).

We’ll see how it will react when it will reach the 50% Fibonacci line, a valid breakdown could announce a further drop.

Price has reached the median line (ml) but it has failed to make a valid breakout and now is pressuring the lower median line (LML). It could come to pressure also the 50% Fibonacci line of the ascending pitchfork. It could still increase if it stays within the ascending pitchfork’s body.

A failure to stay above the LML could signal a potential downside movement again. However, maybe the rate will try once again to climb towards the median line (ml) and only a failure to reach this dynamic resistance could bring us a great chance to go short again.