USD/JPY is traded higher at 106.05 level as the Nikkei index has
opened with a huge gap up today. Further USDX and JP225 growth will push
USD/JPY towards fresh new highs in the coming weeks.To get more news
about WikiFX, you can visit wikifx official website.
The Japanese Yen slips lower as the BOJ Core CPI increased only by
0.0%, even if the specialists have expected a 0.1% growth. The US
Consumer Confidence could bring more activity on this pair, the economic
indicator is expected to increase from 92.6 to 93.0 in August.
The New Home Sales could increase as well and could boost the
greenback, from 776K to 787K, while the HPI may rose by 0.3%, versus a
0.3% drop in the former reading period.
JP225 index has escaped from the minor chart pattern and now is expected
to resume its upwards movement. The next upside target stands at 100%
(24115.95) level, right below the upper median line (UML) of the major
ascending pitchfork.
Further growth signals that the Yen will depreciate against its
rivals, USD/JPY could develop a strong rebound. Nikkei has accumulated
around 78.6% retracement level, the breakout above the minor dynamic
resistance line confirmed more gains.
USD/JPY retested the median line (ML) of the descending pitchfork
forming a bullish engulfing pattern that suggests an up reversal. Still,
an important upside movement is far from being confirmed, I believe
that a valid breakout above the upper median line (UML) will announce
larger growth.
The pair has decreased between the 50% Fibonacci lines of the
descending pitchfork, another higher high, jump above 107.06 will bring a
long opportunity. USD/JPY has signaled the reversal on July 31 after
making a three-line strike structure.
A new higher high or a valid breakout above the upper median line
(UML) will suggest buying with near-term targets at the 150% Fibonacci
line and higher at the first warning line (WL1).
The upside scenario could be invalidated exclusive by a drop below
105.10 former low. The invalidation could come from a Nikkeis potential
significant drop.EUR/USD stands on 1.18 psychological level and is
waiting for the USDX to make the first move. The outlook is bullish as
long as it stays above this static support and above the 250% Fibonacci
line.
USD could take the lead again later today if the US data will come in
line with expectations or better. I want to remind you that EUR/USD will
register a huge drop if the price will drop and close below 1.17
psychological level.
EUR/USD is traded sideways, an upside breakout above the second
warning line (WL2) will suggest buying with targets way above 1.20
level. Maybe you should stay away for now and wait for a real
confirmation. The pair is under some selling pressure as the USDX is
almost to take out a dynamic resistance which means that the index could
violate 93.81 critical resistance as well.
