The Dollar Yen had an interesting session yesterday, moving rather notably against the broader market trend as the USD picked up some momentum. Whilst much of this movement is explainable by weaker bond yields and a leaky stock market, this fundamental bias is likely to be countered in the coming session as the market repositions to better reflect the developing technical bias.
First and foremost, there are two key structures in play that are now suggestive of an impending reversal and subsequent uptrend for the USDJPY. Firstly, the long-term falling wedge remains intact and its downside constraint will be providing some solid support around the current price.
However, this doesn’t necessarily indicate that we are likely to have the rather strong uptrend forecasted below. Luckily, the well-defined double bottom structure present on the chart does infer such a rally is on the way which should see buying pressure mount shortly.