- The US dollar has broken to a fresh, new high against the Japanese yen during trading on Thursday, as the uptrend looks to be continuing.
- We just completed a “W pattern”, which could send this market looking to much higher levels.
- The measured move is for the ¥140 level to be targeted, so we will have to wait and see whether or not that actually occurs.
Strong USD/JPY Uptrend
Regardless, the USD/JPY currency pair has been in an uptrend for some time, so there’s no real point in trying to fight it. The trend is very strong, and I think it will continue to be so as we have seen so much in the way of momentum. The market might have a big fight ahead of it in this general vicinity, but I just don’t see anything that will keep this market from rising over the longer term. This will be especially true if the interest rate differential between the United States and Japan continues to widen, I think given enough time, we probably have a scenario where the markets are going to eventually break out.