The USD/JPY has increased in the early morning, but unfortunately has lost significant ground in the last hours as the sellers are still in the game. Price has found temporary support in the yesterday’s trading session, at 110.62 and now is trading right above the 111.00 psychological level, remains to see if will have enough energy to close the week above this level.
Has increased a little today as the US dollar index has posted some gains in the morning, but the index has decreased again and has fallen below the 99.64 yesterday’s low, could approach also the 99.55 Wednesday’s low till the end of the day, signalling that the greenback could decrease further versus its rivals.
Remains to see what will happen later and how the greenback will react after the all United States data wili come out, only a positive data will send the USD higher.
The Yen has decreased in the Asian session because has punished by the Japanese Flash Manufacturing PMI, which has decreased from 53.3 points to 52.6 points, even if the economists have expected an increase to 53.5 points, signalling that the expansion has slowed down.
The rate has posted some humble gains today and has tried to reach the 38.2% retracement level, but the buyers weren’t strong enough to do that. Price is very close to erase today’s gains and could approach the fourth warning line (wl4) of the former ascending pitchfork.
The perspective remains bearish as long as the rate is located below the 38.2% retracement level, a valid breakout below the fourth warning line will send the rate towards the 50% retracement level and also towards the major downside targets from the 38.2% retracement level, respectively at the first warning line (WL1).
Is on a declining path, so a further drop is favored right now after the false breakout above the second warning line (WL2) of the major descending pitchfork.
The pair has increased a little only because the Nikkei stock index has found strong support right above the 18936 level and now has increased sharply, the minor bounce back is somehow naturally after the impressive drop.