USD/JPY dropped further and seems determined to reach new lows in the upcoming days. Price changed little today, but maintains a bearish perspective. It could come to retest the broken support before will move towards the next downside target. It should drop further as the USDX looks unstoppable on the short term.

The dollar index approaches the 93.00 psychological level, where he may find temporary support. USDX is under massive selling pressure on the short term and I’m not too confident that will be stopped by the 93.00 level. The Yen increased as the Nikkei failed to stay above a major dynamic resistance, the index is somehow expected to drop further in the upcoming period, so the Japanese currency should appreciate versus all its rivals.

I’ve added the USDX’s chart to show you why the greenback is going down versus all its rivals. You can notice that has failed to stabilize above the 93.81 static resistance and above the median line (ml) of the minor descending pitchfork. USDX plunged much below the median line (ML) of the long term descending pitchfork and could reach the sliding line (sl) of the major blue ascending pitchfork again. A bounce back from this sliding parallel line will help the USD to appreciate again versus its rivals.

Support can be found at the 92.49 level and lower at the sliding line (SL) of the major red descending pitchfork.

Price plunged in the yesterday’s trading session and now is located below the 38.2% retracement level. It could come to retest the broken level before will resume the downside movement. The next downside target will be at the lower median line (lml) of the ascending pitchfork. I’ve said in the last weeks that it could be attracted by the lower median line if the Nikkei will start a corrective phase.

Remains to see how larger will be this downside movement, I’m not very confident that the seller’s will have enough energy to drive it below the lower median line (lml) at this moment before will make a minor rebound.