USD/JPY decreased today and has tested the broken dynamic resistance. The Yen has increased a little as the Nikkei stock index has decreased today. The pair could still increase if the JP225 index will jump higher.

The Yen could take the lead and could dominate the currency market only if the Nikkei stock index will start a corrective phase. The perspective remains bullish despite the today’s minor drop. Technically, it was somehow expected to be attracted by a confluence area but is less likely after the today’s drop.

The Yen was boosted by the Japanese Retail Sales, which have increased by 1.5%, beating the 1.35 estimate. The indicator has increased further after the 1.7% growth in the former reading period.

The Nikkei stock index has failed to test and retest the median line (ml) of the ascending pitchfork and now is trading in the red again. The index has opened with a gap up, but the rate has dropped and has closed the gap.

It is still somehow expected to increase further after the aggressive breakout above the outside sliding line (SL) of the descending pitchfork. JP225 could increase as long as it stays within the ascending pitchfork’s body. However, a failure to jump and stabilize above the median line (ml) could send the rate down again towards the lower median line (lml).

Price has failed to resume the upside movement and to reach the median line (ML) of the major ascending pitchfork and the upper median line (uml). However, it could still reach the mentioned upside targets if we’ll have a valid breakout above the upside 50% Fibonacci line of the descending pitchfork. A failure to reach the ML could signal an exhaustion and a potential drop.