Market Outlook: Dollar Yen Long Term - Bullish

The Dollar-Yen pair ended its decline in 2012 and since then has been appreciating as the dollar has weakened and the Yen has strengthened. The first impulse from 76 to 126 could either be part of a three-wave or a five wave larger structure.

However, the correction to that wave has been a triangle structure that suggests considerable underlying strength. That correction looks all but complete so we expect a breakout and rally with long term target in the 160 region. See medium term for the criteria of the management of the triangle break out.

Notably, as the Dollar declines Yen is one of only two safe-haven currencies.