Today's dip in equities has been bought once again and it's tough to see that paradigm coming to an end in the final weeks of the year. It's a time that's the most-bullish on the calendar and that should be a tailwind for USD/JPY.
On the fundamental side, Powell's re-nomination eliminates a USD downside risk while the upside risks from inflation remain in place. Another tailed 5-year auction today means rates are also unimpeded to the upside with 5s hitting the highest levels since the pandemic.
Technically, this is all shown in USD/JPY, which is testing last week's high and a series of highs in the 115.00 range and stretching up to 115.50. We've had a period of consolidation in Oct-Nov and so the overbought conditions have also been relieved.
I don't see much standing in the way of 118.00, a level that was last reached in December (not a coincidence) of 2016.