The yen marching to a different drummer, heading north again

We haven't had to bring out the bearish alternative view for the yen because it found support where it needed to. At the 200-day moving average on $XJY (FXY), where there was also Fibonacci support as I'd shown a while ago here, going into that swing low. Now it's near the 111.49 pivot again on the $XJY chart and if it gets above 114 again it should proceed higher. The daily FXY and monthly $XJY charts below look like it can do that. (Remember that the "yen" often quoted on CNBC, Bloomberg, etc., is typically the dollar-yen pair which goes down as the $XJY (FXY) goes up.)

Once again the yen needs to remain over its recent swing low. Traders should consider going with $XJY long on its move above 111.49 again. The FXY is an ETF that tracks it; others may be using futures, options or extra-charged ETFs.

Yen strength is not what the Japanese government and Bank of Japan (BOJ) want. Their efforts to push it down coincided with that drop to the 200-day MA. But as we noted, the effort wasn't likely to be successful. Now it's floated back up by that 111.49 level which is a key Fibonacci level on the monthly chart. The yen charts are showing that, while it has been taking time to play out, the $XJY remains on track to vault to new highs.