Dollar-Yen Hits a 33-Year High

From the Desk of Ian Culley @IanCulley

Interest rates are climbing worldwide. The US dollar is dominating the pack.

And commodities are kicking off the next leg of a bull run that began in 2019.

The primary trends that opened the decade are showing no signs of reversing. As long as they remain intact, we must lean into them.

I can’t think of a stronger trend to ride than the dollar-yen…

The USD/JPY pair is posting its highest level since June 1990:

Now that’s a big base breakout.

Fresh 33-year highs ignite the imagination. But, from a tactical perspective, I’m more concerned with the completion of a 17-month cup-and-handle.

Here’s a closer look:

I outlined our breakout and target levels in February. Those levels stand.

As long as the dollar-yen holds above 152, I like it long with an initial target of 158.75 and a secondary objective of 167.

I know many of you don’t trade currencies and likely never will. Regardless,  the implications of the dollar-yen’s breakout affect all asset classes. 

The bigger picture: The USD/JPY pair is resolving in the direction of the underlying uptrend, supporting the new rising rate regime and commodity supercycle.

Perhaps diehard technology investors will find the new market environment unsettling. I can assure you the market does not care.

If you haven’t already, it’s time to shift your focus to the new secular uptrends — commodities, old-economy stocks, and rising rates.

Are you buying the breakout in the USD/JPY?

Or, more importantly, are you looking for gold mining stocks and oil and gas names to add to your portfolio?

–Ian

Thanks for reading.

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