Today I’m going to show you why we may be about to see the Japanese yen strengthen across the board.
We’ll discuss the technical triggers required for yen strength from the USDJPY and the JPY Index.
Watch the video below and scroll down for the annotated charts and analysis.
USDJPY has been in rally mode since the start of 2023.
But no healthy rally is without pullbacks, and USDJPY is no exception.
The pullbacks in March and July come to mind, 820 and 780 pips respectively.
While nobody knows if the pair will pull back from current levels, the odds are increasing, especially when we factor in the JPY Index.
As discussed in today’s video, the JPY Index is holding strong above range lows.
And as long as that’s the case, I favor watching for yen longs.
The question is, does USDJPY offer the best option for yen longs, given the dollar’s recent strength?
The jury is out on that for now, but pairs like EURJPY, GBPJPY, and others could offer similar or better potential with the right triggers.
As for USDJPY, a daily close below the 146.50 region would suggest further weakness toward 144.80.
We may even get a full retest of the 142.30 confluence of support.
However, the US Dollar Index (DXY) and that 104.30 region may have something to say about that.