By Mexgroup.com

USD/JPY On The Way Down

The USD/JPY dropped significantly today and resumed the downside movement. I’ve said in the previous days that the rate is somehow expected to drop further even if the Nikkei stock index has rallied and has reached fresh new highs today. The USD/JPY drop as the USDX is still under selling pressure on the short term.

Technically, the current minor decrease is natural after several false breakouts, but remains to see how long this will be because the USDX is somehow expected to pick up again.

Today could be crucial for the USD, the US data could shake the markets and will have a huge influence on the dollar’s move. The greenback needs a helping hand to take control again and to dominate the currency on the short term.

Price drops further and should hit the 38.2% retracement level very soon. I’ve added a minor red descending pitchfork hoping that I’ll catch a potential downside momentum. You can see that USD/JPY is going down along the upper median line (uml) of the minor descending pitchfork, a retest of this obstacle will announce a breakdown below the 38.2% retracement level. A valid breakout above the mentioned dynamic resistance will signal an increase towards the 23.6% retracement level and towards the median line of the ascending pitchfork. I’ve said in the previous reports that the major downside target will be at the lower median line (lml) of the ascending pitchfork.

Brent Another False Breakout?

Price rallied today and resumed the minor rebound. Brent is pressuring the median line (ML) of the major blue ascending pitchfork and could retest the 57.72 resistance level as well. I’ve said in the previous days that the rate could come to retest the ML before will make a crucial decision. Only a valid breakout above the mentioned resistance levels will announce a further increase on the short term.

EUR/GBP Attracted By Confluence Area

EUR/GBP drops after the retest of the median line (ML) of the major ascending pitchfork. We had two false breakouts above the ML, so the current drop is understandable. Is attracted by the confluence area formed between the 100% level with the third warning line (wl3). The next major downside target will be at the lower median line (LML) of the ascending pitchfork.

By Olimpiu Tuns -Market Analyst

I graduated a Master in Business Administration, I am a Market Analyst / Trader on Financial Markets (forex, commodities, futures, options) for more than 6 years, I use technical and fundamental analysis for my daily activity. Founder and Market Analyst at ovtbusiness.com (Financial Markets Blog) and contributor on investing.com, actionforex.com,  countingpips.com, forexalchemy.com, etc.

Risk Disclaimer:

Trading, in general, is very risky and is not suited for everyone. There is always a chance of losing some or all of your initial investment/deposit, so do not invest money you can’t afford to lose. You are strongly advised to carry out your independent research before making any trading decisions.  All the analysis, market reports posted on this site are only educational and do not constitute an investment advice or recommendation to open or close positions on international financial markets. The author is not responsible for any loss of profit or damage which may arise from transactions made based on any information on this website.

The post Daily Market Report – USD/JPY Melting Down October 13, 2017 appeared first on mexgroupblog.