The Japanese Yen is expected to weaken further vs the USD this week. Daily RSI is above the neutral 50 level and price is continuing to rise along side. We have a good amount of Japanese data event risk this week with Japanese CPI being the most important. One of the goals of the BOJ is to increase the CPI to a stable 2% if data starts to fall weak of these expectations the BOJ could potentially add more stimulus weakening the yen.Until the USDJPY can break below the longer term trend line dating back to the beginning of 2013 it makes no sense to fight this trend when we are so close to the trend line and still above it. Also the triangle pattern on the daily chart is pointing to continuation of the trend.
In the longer term USD should continue to rise against the JPY due to the fact that Japan may need to add more QE to strengthen their economy and the US is removing QE from their stimulus program.