USD/JPY decreased a little in the last three days and now it is pressuring a very, very strong dynamic support. Price has found a temporary resistance, so the minor drop is understandable. It remains to see what will really happen and if the Nikkei stock index will resume the current upside movement.

USD/JPY increased as the Nikkei has rallied again. Right now you should stay away and wait for a confirmation and for a fresh trading signal. We don’t have a good opportunity right now because the rate has managed to pass above some very important resistance levels, but it has shown some exhaustion signs as well.

JP225 has managed to jump above the warning line (wl1) and above the 150% Fibonacci line of the descending pitchfork. A valid breakout will signal a further increase and the Yen’s decrease.  The index rebounded after the failure to breakdown below the second warning line (wl2) of the ascending pitchfork.

Resistance can be found at the warning line (WL1) of the descending pitchfork or at the sliding line (sl) of the ascending pitchfork. So, a further increase will help the USD/JPY to increase, but only if the USD will be helped by the dollar index.

USD/JPY is pressuring the median line (ML) after the failure to close near the inside sliding line (SL). The perspective will remain bullish as long as the rate will stay above the warning line (wl1) and above the ML.

A failure to stay above the mentioned support lines (resistance has turned into support) could announce a potential drop.

It seems like that the rate is developing a chart pattern, so maybe you should wait for a fresh trading signal. You should know that a failure to jump and stabilize above the SL will signal a drop as well.