USD/JPY rallies and approaches a very strong dynamic resistance on the Daily chart. It has managed to jump above another important resistance line, signaling that the bulls are very strong. It is very important, how the rate will react when it will reach the near-term resistance level, a valid breakout will announce a further increase. The dollar has increase aggressively versus the Yen despite the USDX’s sell-off. The dollar index has plunged below two very important dynamic support and a further drop is favored after a retest.

The Yen is ruined by the Nikkei’s impressive upside movement. JP225 has reached new highs today and now it approaches a former top.

JP225 has failed to drop further and to close the huge gap up. It has opened the current session with another gap and now the rate is located above the upside 50% Fibonacci line. Maybe the rate will decrease a little to test and retest the broken dynamic resistance before will jump much higher. The next upside target is at the 24129 and only a valid breakout will confirm a further increase towards fresh new highs. A further increase will really force the Yen to lose more ground versus its rivals.

Price has ignored the median line (ML) of the ascending pitchfork and now runs towards the inside sliding parallel line and towards the 150% Fibonacci line. It could be attracted by the confluence area formed at the intersection between the mentioned resistance levels. A valid breakout above the near-term resistance levels or through the confluence area will announce a further increase.

We have a very strong dynamic resistance at the SL1 of the ascending pitchfork, the rate has found a very strong resistance at 113.17 level, that’s why I’ve drawn this dynamic resistance.