Direct answer
USD/JPY may rise due to higher US yields and strong dollar strength.
Most likely bullish catalysts
Higher US yields
Improving higher us yields can support a stronger bid in USD/JPY.
Strong dollar demand
Improving strong dollar demand can support a stronger bid in USD/JPY.
Carry trade boost
Improving carry trade boost can support a stronger bid in USD/JPY.
What confirms the rally
- Confirm the move is supported by us yields rather than a thin short squeeze.
- Check whether leadership across related forex markets is also improving.
- Only trust continuation if the chart holds gains after the first impulsive push.