Yen ($XJY, FXY) continues its march upward toward monthly charts' targets

The Japanese yen ($XJY or the ETF, $FXY) remains in a seemingly inexorable uptrend. Did it seem preposterous when I first starting showing almost two years ago, that the yen would go to 125 and even above and into the mid- to high 130's? Despite the stated goals of the Japanese bank and policymakers over that time seeking to keep the yen lower? Okay, it hasn't broken over 125 yet, but it's been waving higher and higher in its long-term uptrend. The point and figure (P&F) chart shows that its bullish price objective is 140, and suggests that it should remain at/above 116 to avoid a reversal signal. The daily bar chart shows you that it's been looking like an up-and-down ride, yet that's a form of consolidation after new highs are reached, and my monthly chart (at bottom) reveals this has all been part of a huge uptrend. The same uptrend I've been talking about since I created that monthly chart and started posting it almost two years ago.

You'll note that the DMI-ADX indicator on the monthly chart shows that it's still in strongly uptrending mode. It's been rewarding buy-on-the-dip investing for a long time. I first realized it would move to much higher levels when it made a sustained move above 111.49, because 111.49 was the Fibonacci .786 retracement to the previous all-time high of approximately 123.33. Now it's been working on sustaining its move above 123.33, which sets up the Fibonacci targets I outlined on the monthly chart almost two years ago - past the 120's and toward 135 and probably 138. I do believe that Fibonacci levels work, so I have believed for a long time that the $XJY (and the ETF, FXY) would get to those levels, no matter what the fundamental reasons might be at the time in order to support those levels.

Now that the P&F chart also points there (indeed, a little higher to 140), that's additional reason to shore up investors' and traders' confidence that the yen will continue to rise. If one is looking to go sell or short it, one should wait until these targets are met and the indicators also support the uptrend stopping (and yielding to a reversal pattern). While the monthly chart relative strength indicators (RSI) should show some negative divergence as the yen moves toward those higher levels, that kind of divergence will merely be a warning of when to start doing TMAR ("take money and run") upon the price targets being met.

Until then, unless the yen breaks support levels like 111.49 (a major level now) or the 116 indicated on the P&F chart, we should respect that this currency will continue marching upward, no matter what that might imply regarding other world currencies and markets.