The USD/JPY has decreased today and has resumed the yesterday’s bearish candle, has opened with a gap down and could drop much deeper in the coming days if the US dollar index will slide further, the index is under pressure on the short term after the failure to stay above the 102.00 psychological level. The Yen has also increased versus the Euro, not only versus the greenback, the Japanese currency was pushed higher by the Nikkei’s drop, the index has decreased and has resumed the yesterday’s bearish candle, could drop much deeper because has failed to make new highs, has failed also to test and retest an important dynamic resistance, signalling that is too overbought to stay higher, we may have another leg lower on the JP225, which will force the Yen to increase versus its rivals on the short term.

The Yen has received a helping hand also from the Japanese economic data, the Consumer Confidence rose from 40.9 to 43.1 points in December 2016, beating the 41.3 estimate, on the other hand, the USD remains soft on the short term, the United States economic figures have come in mixed and have failed to boost the greenback.

The price has dropped today and has managed to stay below the second warning line (WL2) of the previous major descending pitchfork, could be attracted by the confluence area formed at the intersection between the 114.81 level with the lower median line (lml) of the minor ascending pitchfork, the perspective remains bullish as long as the price is trading inside the ascending pitchfork, but I’m afraid that we’ll have a larger decrease and the rate will drop below the 23.6% retracement level and below the first warning line (wl1) of the minor ascending pitchfork, which represents a very strong dynamic support. The upside movement will resume only if the price will have enough energy to jump and to stabilize above the second warning line (WL2) of the major descending pitchfork, but a drop outside the minor ascending pitchfork will open the door for more declines on the short term.