The CurrencyShares Japanese Yen Trust (NYSEArca: FXY) is up 3.6% to start 2017, making it one of this year’s best-performing currency exchange traded funds. Some technical analysts believe more upside is coming for the Japanese currency.

A depreciating yen is supporting Japanese markets as a weaker currency bolsters the country’s large export industry. Japan currency-hedged exchange traded funds are rebounding as rising speculation of a Federal Reserve interest rate hike later this month fueled a strengthening U.S. dollar and depressed the yen currency.

Last year, the Bank of Japan extended its stimulus measures, supporting Japanese equities and country-specific exchange traded funds. As part of its expanded stimulus plan, The BOJ decided to increase ETF purchases so its total holdings rose at an annual pace of ¥6 trillion, or $58 billion, up from the current ¥3.3 trillion, Reuters reports.

“The main determinates of how high wave [c]travels probably will be the timing of the 11-month cycle and the extent to which the U.S. Dollar remains in its own corrective pattern. If the Dollar Index stays near its present value between now and mid-summer, that should lend a positive bias to Yen trades during the same time,” according to See It Market.

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