Direct answer
Short squeeze possible if US yields stabilize or BoJ signals unexpected dovishness. Minor 24h gain could trigger stop-losses above 141.35.
Most likely bullish catalysts
BoJ unexpectedly dovish pivot
Improving boj unexpectedly dovish pivot can support a stronger bid in USD/JPY.
US yields rebound sharply
Improving us yields rebound sharply can support a stronger bid in USD/JPY.
Risk-on sentiment lifts carry trades
Improving risk-on sentiment lifts carry trades 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.