The rate has continued to increase and has managed to reach a very strong dynamic resistance level. The Yen drops further as the Nikkei stock index has reached new highs. The JP225 index has opened the day with a huge gap up.

The Yen could recover a little if the JP225 will drop and will try to close the gap. However, a further increase will force the Japanese Yen to lose more ground versus its rivals. The BOJ has maintained the interest rate steady at -0.10%, matching expectations. However, the Trade Balance has come in worse than expected, the indicator it was reported at -0.19T, much below the -0.14T estimate.

JP225 has rallied aggressively and it has managed to reach the upside 50% Fibonacci line of the ascending pitchfork, where it has found a temporary resistance. Maybe the rate will come back down trying to close the morning gap. The perspective remains bullish despite a minor drop. Personally, I still believe that the rate will try once again to make a valid breakout above the 50% line in the upcoming days. Only another rejection, a false breakout or a failure to reach the 50% line it will send the index down.

The pair has managed to reach the median line (ML) of the major ascending pitchfork after the valid breakout above the upper median line (uml) of the descending pitchfork. A valid breakout above the median line (ML) will signal a further increase towards the next upside target from the inside sliding line (SL).

The sliding parallel line represents a very strong dynamic resistance, you can see that it has rejected the price in the past. Only a valid breakout will announce a potential further increase. You should know that a false breakout above the near-term resistance lines or a failure to reach them again it will announce a potential reversal.