USD/JPY Rising odds for a move higher!|KOL Analysis•Olimpiu Tuns

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.

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.

● JP225 Trading In The Green!

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 Stuck Into An Extended Range!

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).

● EUR/USD Bearish Pressure Grows!

EUR/USD continues to stay near 1.18 psychological level signaling that the sellers could take full control if the USDX will jump higher. It stays within the minor up-channel, for now, a valid breakdown below the downside line and below 1.18 suggest selling as the pair will drop deeper.

Still, a strong bullish momentum or a false breakdown with great separation invalidates a bearish scenario. EUR/USD seems undecided even if yesterdays session was closed lower at 1.1817 level versus the last days. Please keep in mind that a valid breakout above the WL2 signals further upside rally.

Technically, only a drop below 1.17 psychological level will rally confirm a corrective phase to 1.1495 or lower towards 1.1200 level.

{About the Author}

Olimpiu Tuns is a seasoned market analyst / trader / trainer on the financial markets with expertise in forex, cryptocurrencies, commodities, futures, options, index, CFD for more than 8 years. He is also a famous blogger in both technical and fundamental analysis, trading signals, trade setups, etc.

He has worked as a Market Analyst / Consultant for three major Brokerage companies, Admiral Markets, MultiBank Exchange Group and InstaForex (live webinars, market analysis, educational materials, video analysis, video tutorials, ghostwriting, content creator), as a Social Media Manager and as a Financial Markets & Crypto Analyst / Contributor for very important news portals/blogs (investing.com, benzinga.com, forexalchemy.com actionforex.com, countingpips.com), websites, educational platforms (Forex.Academy, Forex.Today), independent clients, etc.

Olimpiu Tuns currently works as a Financial Markets & Crypto Analyst / Signal Provider / Trader / Trainer.

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