The pair has increased and resumed the Friday’s bullish candle, but remains to see if the buyers will have enough power to force the rate to make a valid breakout above the near-term dynamic resistance. The Yen decreased today as the Nikkei has managed to rebound and to recover a little after the massive drop.

USD/JPY increased even if the USDX has decreased and has erased the morning gains. The index is trading in the red, but this could be only a temporary drop. Right now it is very important to see what will happen on the Nikkei because a further drop will force the Yen to increase.

You can see that the JP225 has found a temporary support at the lower median line (lml) of the minor ascending pitchfork. So, only a valid breakdown below the lower median line (lml) and below the UML will open the door for a further drop.

A further drop will help the Yen to increase further versus all its rivals and not only against the USD. EUR/JPY and the GBP/JPY are somehow expected to drop in the upcoming period, but we still need a confirmation.

USD/JPY is almost to reach the upside inside sliding line (sl), which it represents a very strong dynamic resistance. Price has failed to make a valid breakout above the mentioned resistance in the last attempts. It has also failed to reach and retest the median line (ML) signaling an exhaustion. I want to remind you that only a valid breakdown below the downside 50% Fibonacci line of the major ascending pitchfork it will announce a further drop in the upcoming period.

Personally, I believe that only a valid breakout above the upper median line (uml) and a failure to reach the 50% line of the ascending pitchfork could signal a further increase.