Yen is on a weak path, but it’s not one-wayUS Dollar/Japanese YenFX:USDJPYKrisadaYoonaisilYen is on a weak path, but it’s not one-way. Technical Analysis 1. USDJPY has already hit the target of the Triangle Flag pattern and continued to climb, signaling a strong uptrend. 2. However, the move may be a zigzag pattern like an ending diagonal wave, that is, the price could continue to make higher swings while alternating between rallies and pullbacks for a while. Alternatively, we can say that there are still no clear bearish reversal signals yet, although short-term corrections are possible. 3. Resistance at the previous high around 158.50 is a level that could trigger a pullback. 4. If a correction breaks below 155.00, the next support lies near 153.00, where a rebound could occur. 5. In the longer term, USDJPY seems to be in an early uptrend. Any pullback is likely to be a consolidation in a corrective wave before the uptrend resumes. Fundamental Analysis 6. Currently, the market is awaiting the Japanese government's approval of an economic stimulus package worth over 20 trillion yen, aimed at easing cost of living, including subsidies for utilities and a gasoline tax. This has contributed to yen weakness. 7. However, Japan’s Finance Minister recently stated that if the yen is excessively volatile or weakens, intervention is possible. As a result, there may be limited room for very sharp upside spikes in USDJPY. Analysis by: Krisada Yoonaisil, Financial Markets Strategist at Exness