By Mexgroup.com
USD/JPY Bulls In Control
The USD/JPY has opened with a gap up signaling that the bulls are in full control. Price is approaching a major dynamic resistance, but a breakout is favored as the Yen is demolished by the Nikkei’s bullish movement.
The Japanese currency drops versus all its rivals on the short term, this could continue as the JP225 continues the upside movement. The Nikkei is pressuring a major horizontal resistance, a valid breakout above the 20058 static resistance will confirm a further increase and a Yen’s further depreciation.
Only another false breakout above the 20058 horizontal resistance will signal another leg lower and a Yen’s dominance. The Japanese banks are closed in observance of Respect-for-the-Aged Day.
The pair is driven by the technical factors, remains to see what will happen after the United States data will be released, but I don’t think that will have any significant impact.
Free Reports:
The USD/JPY is trading in the green and is almost to hit the third warning line (WL3) of the descending pitchfork. Personally, I believe that if will touch it will break it because, a valid breakout will signal a further increase in the upcoming period.
Continues to move in range on the short term, so we’ll have a clear direction once will breakout from this range.
I’ve drawn a minor ascending pitchfork hoping that I’ll catch another leg higher, the rate could be attracted by the median line (ml) of this pitchfork. Temporary resistance could be found at the 38.2% retracement level as well.
A failure to reach the median line (ml) will signal a minor drop towards the lower median line (lml).
EUR/JPY Breakout In Play
EUR/JPY is trying to breakout from the confluence area formed at the intersection between the median line (ml) with the second warning line (descending dotted line) of the minor descending pitchfork.
A valid breakout through the mentioned confluence area will accelerate the upside movement. Price has finally escaped from the minor ascending channel between the sliding lines (SL), signaling a further increase.
Brent Oil Loses Momentum
Brent Oil moves higher within the ascending channel and should hit new highs in the upcoming period. Technically is showing some exhaustion signs, but nothing significant. The Friday’s failure to reach the 56.06 previous high has signaled that a minor drop could come. Price could decrease a little to retest the downside line of the minor ascending channel before will jump towards the $57.00 per barrel.
By Olimpiu Tuns
Market Analyst
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The post Daily Market Report – USD/JPY Crucial Breakout To Come September 18, 2017 appeared first on mexgroupblog.
