The yen weakened as it neared the end of last week's trade, with its value falling against the US dollar to a 7-month low.
While several other central banks raised interest rates at meetings in the previous weeks, the Bank of Japan (BOJ) at last Friday's meeting still chose to keep its interest rates low at -0.10%.
The governorship that has been taken over by Kazuo Ueda is seen to have yet to change the previous loose policy, prompting the yen's attraction to fade.
Thus, although the US dollar also suffered a decline last week after the Federal Reserve (Fed) acted to stop rate hikes at the latest FOMC meeting, the king of the currency remained traded strongly against the more gloomy Yen.
It can be observed on the USD/JPY currency pair chart that the increase on last Friday has reached a height of 141,800.
The price movement that is still holding above the support of the Moving Average 50 (MA50) on the 1-hour time frame on the USD/JPY chart is driving a continued bullish trend.
Continuing trading at the opening of the Asian session earlier this week, the price dropped slightly to around 141,500, but with the momentum of last week's surge, the price is likely to continue climbing higher.
The target for the price increase if it continues is seen to be towards around 143.00 and will record the latest highest level again this year.
However, it should be noted that the US dollar also has the potential to strengthen again after the Fed signals for a rate hike after this towards the end of 2023.
Therefore, the price can be pushed down again and a change in the price trend will occur.
The price drop is seen to go to the 140,300 zone to react to the concentration zone first.
After a clearer bearish signal, the price will continue its decline to around the support zone at 139.300-139.000.
