This is a chart that we have focused on time and time again. A 4th wave triangle (that took 12 years) is complete at 124.13 as a 4th wave and the USDJPY is headed lower in a 5th wave (and terminal thrust) that will end below 81.12. The underside of the lower line of the triangle was tested as resistance at 110.65 last month. This could be the top of corrective wave 2 from 95.72. Be sure to read the Daily Technicals for ideas on short term direction.
Japanese Yen interest rate expectations have remained relatively unchanged through the past several months of trading, but a clear improvement in Fed Rate expectations means that markets expect the USDJPY yield spread will improve by 56 basis points in the coming year of trading. We nonetheless see that there have been other fairly significant drivers of USDJPY volatility, and we place a great deal of weight on recently-accurate USDJPY Forex Sentiment indicators.
Forex Futures Data Suggests USDJPY Could Rally Further