USD/JPY should return to its uptrend and surpass 2024 peak
Oct 10 (Reuters) -USD/JPY should return to its uptrend which has endured since 2011 and is likely to surpass this year's peak at 161.96.
Recent moves have laid foundations for a bigger rise with the drop from this year's high - which required intervention and changes in both U.S. and Japanese monetary policy - flushing out the mass of yen shorts that had been restraining the USD/JPY rise.
Without those shorts USD/JPY is free to rise following September's drop to 139.59 which slightly exceeded the 141.51 target for a very minor (23.6%) correction of the rise from 75.31 in 2011.
While this is clearly an opportunity to take advantage of the trend and position for its continuation, traders opted to sell short and have subsequently been squeezed during the rise to 149.36 in October.
Interest rates and U.S./Japanese monetary policies underpinning this pairing continue to provide powerful support for a robust technical uptrend that speculators should use to their advantage. The trend is your friend and the next target is 180.
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(Jeremy Boulton is a Reuters market analyst. The views expressed are his own)
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