The USD/JPY has decreased sharply today, the rate has reached fresh new lows and is expected to fall further in the coming hours and days as the price is very heavy on the short term, the Yen has edged higher even if the Japanese economic data have come worse than expected, the BOJ ha announced that will take action if needed in the coming period, they said that the Consumer Price Index is to reach the 2% target during FY 2017. The Bank Of Japan governor has sustained also that the economy is likely to expand moderately, the Yen has surged because the BOJ has maintained the monetary policy unchanged.
However the Household Spending has decreased by 2.2%, much more compared to the 0.4% estimate, the economic indicator continues to drop , has decreased by 1.1% in the previous reading period, while the Tokyo Core CPI has fallen by 0.4%, has come in line with expectations, moreover the National Core CPI has decreased by 0.5%, more than the 0.4% prediction. The Yen has received a helping hand from the Japanese Unemployment Rate, which has decreased from 3.2% to 3.1% , the Prelim Industrial Production has increased by 1.9%, much more compared to the 0.6% forecast. Unfortunately for the Yen, the Japanese Retails Sales have dropped by 1.4%, more than the 1.2% estimate.
The price has plunged today, has decreased because has failed to stay inside the previous ascending pitchfork, has jumped above the lower median line of the ascending pitchfork, but the buyers weren’t able to hold the rate in the buyer’s territory.
The price continues to trade inside the descending pitchfork’s body, has retested the upper median line of this minor pitchfork and now looks determined to reach fresh new lows till the end of the day, will become strongly bearish if will decrease ad stabilize below the median line (ml) of the descending pitchfork, the next downside target will be at the lower median line of the descending pitchfork, the price could approach also the major lower median line (LML) of the Daily descending pitchfork, we have an important support level at the 50% retracement level.