GBP/JPY  increased significantly in the last days and has managed to reach an important upside obstacle. Remains to see if the rate will have enough energy to make a valid breakout or it will turn to the downside again on the short term. Price is trading in the green right now and erased the Friday’s losses.

The Japanese Yen decreased today, even if the Nikkei stock index failed to stay above a dynamic resistance. The JP225 has opened with a gap up in the morning, but remains to see if the rate will stay above.

I’ve added the Nikkei to show you better what could happen with the Yen in the upcoming period. You can see that has retested the third warning line (wl3) of the former descending pitchfork and now is pressuring the lower median line (LML) of the ascending pitchfork. However, it could still jump above the wl3 because has opened right on it. Only a retest of the wl3 followed by a drop will confirm that the rate could start another leg lower. While a valid breakout above the wl3 will signal a Yen’s depreciation.

The Nikkei could drop trying to close the morning gap, but doesn’t mean that will reach new lows because the bias remains bullish.

The rate has managed to reach and retest the 152.83 static resistance where it could find resistance again.  A valid breakout will signal a larger increase, but a false breakout and a rejection will send the rate towards the first warning line (WL1) of the ascending pitchfork and towards the 148.44 static obstacle. I’ve said in the previous weeks that it should increase at least till the 152.83 and to reach the 150% Fibonacci line (ascending dotted line).

It could come to retest the WL1 before will really breakout above the 152.83 static resistance. A selling opportunity will appear after  a valid breakdown the WL1, which represents a very strong dynamic support.