The USD/JPY has dropped a little today, even if the USDX has managed to rebound and to recover after the last two day’s drops.  The Yen has increased surprisingly today as the Nikkei stock index has jumped much above the 19700 major static resistance, the index has opened with a gap up and looks determined to climb much higher in the upcoming period.

The Yen has also increased versus the Euro and against the Cable, but this drop will be only temporary because a further JP225 increase will send the Yen lower versus all its rivals. Maybe the Yen has increased as the Nikkei has decreased a little to close the morning gap, but now is losing ground versus the greenback as the USDX has rallied aggressively in the last hours.

The dollar index is pressuring the 99.12 static resistance again (support has turned into resistance), but personally I don’t think that will have the power to stabilize above this level unless we’ll have a minor consolidation before, the index could move sideways on the short term before we’ll have a clear direction.

The Yen has posted some gains even if the Japanese Consumer Confidence has dropped from 43.9 to 53.2 points, even if the traders have expected to see an increase to 44.3 points.

Has decreased a little, but now looks determined to resume the upside movement, personally I would like to see a minor decrease towards the lower median line (lml) of the ascending pitchfork, a retest of the lower median line (lml) will bring a great buying opportunity. Could drop a little after the impressive rally, the next upside target will be at the 23.6% retracement level, a breakout above is favored.

Personally, I would like to see a retest of the lml before will resume the upside movement, could be attracted by the median line of the ascending pitchfork, but only if the USDX will jump again above the 101.00 psychological level. A further increase is favored after the failure to reach the major downside target from the 38.2% retracement level.