The yen is another one of the major developed market currencies currently showing weakness against the greenback.
Looking ahead, with yields on benchmark 10-year Japanese government bonds now back to 0% and rising, the Bank of Japan could even expand on its quantitative easing program to maintain its 0% target, Robert Bush, ETF Strategist at Deutsche Asset Management, told ETF Trends.
SEE MORE: Yen Hedged ETFs Rally Again
“Since early 2015 the Dollar Index Bullish Fund was moving in a descending channel. The fund broke above that channel on Nov. 14 when it gapped above $25.65. Since the channel was approximately $2 in height, $2 can be added to the breakout price providing a long-term target of roughly $27.65. A more aggressive target is $28.50 to $29,” reports Investopedia.
For more information on the USD, visit our U.S. dollar category.