Ella 
USD/JPY posted its third consecutive day of gains on Wednesday and is currently trading around 150.00, just below the one-week high hit the previous day.
The Japanese yen (JPY) continues to underperform relatively after the Bank of Japan (BoJ) adopted a more dovish stance, favoring the pair’s gains. On the other hand, the greenback’s promising recovery from the multi-week low hit on Monday stalled and capped the pair’s upside. Additionally, traders opted to remain on the sidelines ahead of Federal Reserve (FED) Chairman Jerome Powell’s speech later in the North American morning session.
From a technical perspective, USD/JPY showed some resilience earlier this week below the 200 simple moving average (SMA) on the 4-hour chart. The ensuing rise and the divergence in the policy outlook of the Bank of Japan and the Federal Reserve favored bullish traders. Additionally, oscillators on the daily/4-hourly charts remain within positive zones, indicating minimal upside resistance for spot prices. Therefore, some follow-on strength back towards the 151.00 mark seems likely.
This momentum could extend further towards a retest of yearly highs near 151.70, leading to a move to around 152.00, or the multi-decade high hit in October 2022.
On the other hand, the psychological 150.00 mark now coincides with the 100 EMA on the 4-hour chart, appearing to protect the near-term downside trend. This level could also be a key pivot for short-term traders, and a decisive breakout could drag the USD/JPY pair back towards the 200-period EMA (currently around 149.55) on the 4-hour chart. Some follow-through selling will serve as a new trigger for bearish traders and pave the way for some meaningful depreciation moves.
