Put this little script into you ~/.bashrc and you can run it from anywhere:

genpasswd() {
	local l=$1
       	[ "$l" == "" ] && l=20
      	tr -dc A-Za-z0-9_ < /dev/urandom | head -c ${l} | xargs
}

It takes one parameter which says how long a password you want:

tdd@s10e-tdd:~$ genpasswd 10
 EpVrnblbz_

tdd@s10e-tdd:~$ 

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Source: http://www.cyberciti.biz/tips/linux-unix-bsd-openssh-server-best-practices.html