The rate has increased significantly in the second part of the day as the USDX has managed to extend the latest gains, the index has rallied and has increased as much as 101.40, a further increase will help the USD to appreciate versus its rivals. The USD/JPY is approaching an important dynamic resistance, which could stop the momentum again.
The Yen has increased a little today as the Nikkei stock index has plunged aggressively, but the index has squeezed again and have weakened the Japanese currency. The JP225 stock index is expected to approach and reach the 19700 psychological level, a breakout above this static obstacle will force the Yen to drop sharply versus all its rivals, not only against the USD.
The Yen has increased in the morning as the Japanese Revised Industrial Production has increased by 0.7% in December, beating the 0.5% estimate and more versus the 0.5% growth in November. The USD has taken the lead again after the United States economic data was released, the PPI rose by 0.6% in January, beating the 0.3% estimate and the 0.3% growth from the previous reporting period, while the Core PPI surged by 0.4%, exceeding the 0.2% prediction. The greenback could increase further as the Federal Reserve Chair has sustained that the FED could increase the interest rate again in the upcoming meetings.
The has managed to jump above the 23.6% retracement level and now is approaching the second warning line (WL2) of the major descending pitchfork, will resume the medium term upside movement if will have enough energy to take out this dynamic resistance, you can see that the warning line represents a very strong resistance, has rejected the price in the last breakout attempts.
Should climb higher after the failure to continue the corrective phase, has found strong support right above the 38.2% retracement level and now is expected to try again to take out the major dynamic resistance from the second warning line (WL2) of the major descending pitchfork, I want to remind you that another rejection will send the price tumbling.