The previous analysis of the situation of the Japanese Yen directly indicated that the currency may continue to weaken. As you can see it did, the price rebounded from the 2015 resistance. Currently, we have a chance for a stronger downward correction, but there must be two factors together that will drive the dollar sell-off to the yen. The first is the strong reaction of the Japanese government and the bank to stop inflation. As an economic basis, this will be the best confirmation of Japan’s readiness to defend its currency. The second is rising inflation in the United States which will have a positive effect on the value of the yen against the dollar. President Biden’s team wonders if large amounts of oil can be released to stop rising inflation. This shows that Americans are becoming increasingly concerned.
The second signal after economic values for traders and those looking mainly at the chart is the current image in front of the monitor. If the situation continues, we have a chance for the weak but nonetheless RGR pattern shown in the second image in the H1 timeframe. When the price of the currency pair does not go up and the decline continues, we have a chance for a stronger decline.