Toyota Motor Corporation (TM) opened on a 2.3% up-gap this morning, on a share buy-back announcement, and amidst a glaring positive-momentum divergence.
The strength is our initial signal that the entire correction off of the Aug 2, 2013, high at 134.94 into the Mar 20, 2014, low at 106.31 is complete, and TM has just started a recovery rally or new bullish period.
That said, TM must hurdle and sustain above its nearest-term down trendline, now at 114.20, to inflict meaningful damage to the still-dominant near-term downtrend.
Concurrently, USD/YEN looks like it is in a mature sideways-digestion pattern that, when finished, should resolve to the upside in an upside off of a rising 200-day EMA, now rising through 100.20.
Such an upmove in USD/YEN (decline in YEN) will be beneficial to TM's current and future sales, and will support the outlook for a rising TM share price.