USD/JPY plunged in the short term even if the US Dollar Index has managed to stay higher. The pair is traded at the 110.17 level at the moment of writing below 110.32 resistance. It could move sideways in the short term before really starting a new upwards movement.
The bias is bullish, so we could still search for long opportunities around the current levels. Only the DXY's correction after the last upside momentum could push the USD/JPY lower towards critical support levels.
USD/JPY Sell-Off!
USD/JPY registered an amazing drop because the Yen is strongly bullish in the short term due to the JP225 sell-off. The DXY is traded at 91.92 level below 92.07 today's high signaling that the Dollar is still strong.
The 110.39 static support failed to hold, so now the pressure remains high. USD/JPY has registered only a false breakdown with great separation above 110.00 psychological level. Stabilizing above this level could bring a new buying opportunity.
Forecast!
A temporary consolidation above 110.00 followed by a breakout above 110.39 and through the descending pitchfork's upper median line (uml). The outlook is still bullish as long as it stays above the uptrend line.
Escaping from the descending pitchfork's body without reaching the median line (ml) indicates a strong growth ahead.
