[JPY] Strong Yen

USD/JPY 1-hour chart, source: forexfactory.com

USD/JPY weekly chart, source: forexfactory.com

Japanese economy stimulus policy, Abenomics has supported by the victory of Japan's ruling party in upper house election. It includes weak Yen against the major currency especially U.S. dollar. Japan's Prime Minister Shinzo Abe has tried the weak Yen, but his effort seems not to be successful well. Though his effort, currency pair, USD/JPY draws the downward trend in weekly chart.

The price of USD/JPY plunged to price band in 2014 and 100s. If the current price is collapsed, USD/JPY faces two-digit price again.

Where the price move? There is the strong downward trend, but is it effective still? The price has faced the support line. There are possibilities of rebound and collapse.

In short term, or for about a month, Yen may be weak or greenback may rebound judging by the trend in the year. But it may break through previous top, 107, and plunge below 100.

Because the uncertainty in the market calls the safe asset, strong yen or weak USD/JPY will show its feature in mid and long term, I think. Japan team tries the economy recovery by the weak yen, but their plan will fails.

And the dollar pushed higher against the other major currencies on Friday, but was still on track for a weekly loss as investors continued to weigh up prospects for future U.S. interest rate increases.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.45% to 94.53, but was still down 1.2% for the week.

The index fell to lows of 94.05 on Thursday, the weakest level since June 23.