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Are More Gains Ahead?
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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.