USD/JPY Edges Higher
Price goes higher very fast as the Yen is punished by the Nikkei’s amazing rally. USD/JPY resumed the yesterday’s immense bullish candle and approaches the 110.66 previous high. The pair rallied even if the dollar index has failed to stay above the 92.00 yesterday’s high.
The USDX increased as much as 92.09 today, but now is trading below the 91.92 static resistance (support turned into resistance). USDX rebounded because it was too oversold to drop much deeper on the short term, only an accumulation will signal a potential broader rebound.
The Yen is into a corrective phase on the short term as the JP225 index seems unstoppable on the short term. The index has ignored the 19700 horizontal resistance and is heading towards the 20058 static resistance, where he could find resistance again.
A further increase will send the Yen into agony, right now only the fundamental factors could turn it to the downside again.
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Price moves in range on the daily chart and most likely will continue this extended sideways movement in the upcoming period. USD/JPY rallies after the false breakdown below the 108.12 level and after the failure to reach the 61.8% retracement level. Resistance can be found higher at the third warning line (WL3) of the major descending pitchfork, at the 38.2% retracement level and at the warning line (wl1) of the ascending pitchfork.
It’s hard to believe that we’ll have a sharp rally that will reach the confluence area formed between the mentioned resistance levels.
Brent Oil Breakout Needs Confirmation
The Brent remains bullish and tries once again to take out the dynamic resistance from the warning line (wl1). Is trading in the green after the failure to retest the 53.03 static support (resistance turned into support). Price is approaching the 54.55 horizontal resistance, where he could find temporary resistance again. A valid breakout above the warning line (wl1) will confirm a further increase towards the $57 per barrel.
GBP/JPY Heading Towards Major Resistance
GBP/JPY rallies and approaches next upside targets. Price increased more than 250 pips today as the Cable received a helping hand from the UK’s inflation data. The figures have come in better than expected and have boosted the price. Price is approaching the red line, where he could find temporary resistance again. Could be attracted also by the 150% Fibonacci line (ascending dotted line).
By Olimpiu Tuns
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