USD/JPY increased today and is trying to recover after the yesterday’s massive drop. It remains to see if it will resume the upside movement or this will be only a temporary rebound. You should know that the perspective remains bullish as long as it stays above the near-term support level. It could come back down to test and retest the support line before will try to jump much higher.

You should know that the United States data could shake the price, so you should be very careful in the US session. The ISM Non-Manufacturing PMI could drop from 58.5 to 58.0 points, the ADP Non-Farm Employment Change could increase to 163K to 185K, while the Final Services PMI could remain the same at 52.9 points.

Nikkei drops aggressively after the false breakout above the upper median line (uml) of the ascending pitchfork. It has closed the former gap up and now seems determined to reach the upside 50% Fibonacci line of the ascending pitchfork.

It is pressuring the 24129.3 static support (resistance has turned into support). A failure to stay above this broken static obstacle could signal a reversal, but it is premature to talk about this.

USD/JPY increased significantly in the last weeks and it was almost to reach the inside sliding line (SL1) of the ascending pitchfork. I’ve told you in the previous weeks that the rate it is expected to approach the SL1 if it will make a valid breakout above the median line (ML).

Maybe the rate will try again to reach the SL1 and the first warning line (wl1) of the descending pitchfork, actually it could be attracted by the confluence area formed at the intersection between these two resistance lines.

You should know that a failure to reach the mentioned resistance lines it could send the rate down again on the short term.