Nov 14, 202411:19 GMT

USDJPY+0.30%DXY+0.34%

A combination of fundamental and technical factors point to even bigger U.S. dollar gains versus the Japanese yen in the days and weeks ahead.

USD/JPY has climbed above 156.00 for the first time since July, fuelled by higher U.S. treasury yields and Donald Trump’s election victory in the United States.

There are a number of bullish signs on the current USD/JPY Ichimoku daily chart. There is potential for the completion of a “V” wave, which would be an 100% retrace of the 161.96 to 139.58 (July to September) drop.

The tenkan-sen and kijun-sen are positively aligned, with spot trading above both these lines and the cloud too. As chikou-span is well above the price of twenty-six days ago, that shows momentum is currently positive.

As there will be a “cloud twist” on Friday below 146.00, that warns of a potential relapse in the near-term. If there is not a significant relapse this week, however, that will increase the likelihood that the spot uptrend will remain on track for gains to the 161.96 “V” wave target. Ichimoku Explainer.