USD/JPY Rising odds for a move higher!
USD/JPY changed little in the last sessions waiting for a clear signal from JP225 and from the USDX. The Japanese Yen could lose more ground versus the dollar if the Nikkei will resume its upside movement.To get more news about WikiFX, you can visit wikifx official website.
On the other hand, the greenback should appreciate and dominate the currency market if the US Dollar Index closes above 93.24 former high and confirms an up reversal. The pair has decreased a little today after the Japanse data was released.
The Final GDP dropped by 7.9%, less versus 8.1% estimated, while the Final GDP Price Index increased only by 1.3%, failing to reach the expected 1.5% growth. The Current Account was reported at 0.96T in July, the Economy Watchers Sentiment climbed from 41.1 to 43.9 points, while the Bank Lending increased by 6.7%, more compared to the 6.4% estimate.
The Average Cash Earnings dropped less than expected, but unfortunately, the Household Spending dropped by 7.6%, even if the specialists have expected only a 3.6% drop.
Nikkei stock index has rallied on the mixed Japanese data and it continues to stay above 23,185.85 broken static resistance. Ive said in a previous analysis that the Yen should depreciate versus the other major currencies if the JP225 will continue to increase.
Stochastic indicates a bearish divergence but only another lower low, drop below 22,594.79 could signal that the upside movement is finished. Further growth to the upper median line (UML) could push USD/JPY towards fresh new highs in the upcoming period.USD/JPY seems undecided around 106.20 level. It moves sideways between 105.10 and 107.06 levels, so we should wait for a valid breakout from this pattern before taking action again.
The rate prints a symmetrical triangle inside of this range, an upside breakout of the upper median line (UML) of the descending pitchfork confirms an upside breakout from these patterns as well.
USD/JPY is somehow expected to develop a strong leg higher after its failure to test and retest the median line (ML) if the last attempts. If you want to buy it, please wait for a valid breakout of the UML and above the 107.06 level.
On the other hand, if you are a seller, you should wait for a drop below 105.10 or for a reversal pattern (false breakout) on the upper median line (UML).