Although betting on the dollar and against the yen this year has been a losing proposition, some technical traders see upside ahead for the greenback against the Japanese currency.[related_stories]
“USDJPY has been following a classic playbook and is, potentially, at or close to a major low. 106-107 looks like the zone to look for a reversal. But as an experienced trader, I also understand that stops are a must. For me, I’d say this pattern (and setup) would be wrong if USDJPY falls below 104,” according to See It Market.
The U.S. dollar has previously rallied on expectations for a tighter U.S. monetary policy, which would diminish the amount of dollars sloshing around the economy and prop up the greenback against foreign currencies. However, with Fed backtracking on its interest rate outlook, the dollar is losing some of its previous momentum.
CurrencyShares Japanese Yen Trust