USD/JPY – Monthly Analysis
In this update, we’ll examine the evolving dynamics between the Dollar and the Yen, outline the technical patterns driving the latest move, and map the scenarios that could shape the path forward. Whether this is the start of a larger development or simply a short-term fluctuation, understanding the nuances now may prove crucial in the days and weeks ahead.
CANDLES
No surprises in the carry trade: the Dollar continues to advance, and the Yen continues to play the losing side. The pair formed a bullish continuation candle in November. The weekly frame was likely a pausing doji, while the 2-day frame shows a classical Rising Three Methods setup. The Dollar is marching toward levels not seen since 1986. It remains bullish until signaled otherwise.
ELLIOTT WAVES
The long-term targets for the USD/JPY pair remain intact.
The long-term targets for the USD/JPY pair remain intact.
Summary
USD/JPY remains overwhelmingly bullish for the greenback following the November close. Momentum is strong, and an acceleration over the next one to two years remains a plausible scenario.
The Dollar remains bullish until evidence to the contrary appears on at least the weekly frame.
Happy Trading!
