USD/JPY turned bullish early this year after being on a steep bearish trend for about three months in Q4 of 2022. This pair gained more than 10 cents as the USD continued higher on better economic data from the US, while the JPY was slipping lower as safe havens lost appeal.

But the 200 SMA (purple) stopped the climb on the daily chart and we saw a reversal last month. Although the decline stopped above the previous one, making a higher low, which is a bullish sign. This forex pair continues to make higher lows, with the 20 SMA (gray) turning into support last week, so buyers are in control, with the new Bank of Japan governor Ueda keeping the mild rhetoric.

Comments From BOJ Governor, Kazuo Ueda

• Positive signs are emerging in prices, wage growth
• Will achieve the inflation target, although it may take time
• No immediate need to review the 2013 joint statement with the government

USD/JPY continues to show buying sentiment, as it pushed above the 134.00 resistance level yesterday, which was the high from last week. This strengthens the belief that the bullish trend will continue for this pair, as it is trading on a bullish channel on the chart. The next target for the pair comes at 135.10.

So, the bullish momentum is expected to persist, since moving averages are turning into support now on the daily chart. In case the 134.00 level is broken, the price may face a test of the critical support level at 133.30 before making any further attempts to rise.