USD/JPY decreased a little after the yesterday’s amazing increase. Price has managed to jump above a dynamic resistance and seems determined to reach new highs and the next upside targets. The today’s minor decrease it was somehow expected also because the Nikkei stock index has continued to drop and it has forced the Yen to increase a little.

The USDX has decreased a little as well in the morning and now is pressuring a broken dynamic resistance, so the USD minor drop is natural as well.  As you already know, the USD has received a strong support from the United States data in the yesterday’s session. The ISM Non-Manufacturing PMI was reported at 61.6 points, higher versus the 58.0 estimate, the Final Services PMI increased from 52.9 to 53.5 points, beating the 52.9 estimate, while the ADP Non-Farm Employment Change increased to 230K, exceeding the 185K estimate.

The US is to release the Unemployment Claims today, which is expected to remain steady at 214K in the previous week.

The JP225 decreased sharply and has closed the morning gap up. It has reached the upside 50% Fibonacci line as I’ve told you in the yesterday’s trading session. It is trading much below the 24129 static resistance and I’ve told you that a false breakout above this major resistance could signal a potential significant corrective phase.

USD/JPY has managed to jump above the inside sliding line (SL1) of the ascending pitchfork and it was almost to reach the first warning line (wl1) of the descending pitchfork. Personally, I believe that only a false breakout above the SL1 will signal a corrective phase. A valid breakout above the warning line (wl1) will confirm a further increase, but only if the rate will stay above the SL1.