While market sentiment is still risky, the safe-haven Yen is seen to have begun to lose its strengthening momentum since Wednesday's trading.
In the absence of key factors influencing the situation, analysts are of the view that profit -taking activity may occur towards the close of April trading.
The loss of competition from the Yen has opened up more room for the US dollar to continue to dominate financial markets.
The US dollar performed well throughout the week with the US dollar index also rising to a 5 -year high.
Ahead of next week’s FOMC meeting, the US dollar is expected to continue to maintain its strength in anticipation of a more aggressive interest rate hike by the Federal Reserve (Fed).
On the price chart of the USD/JPY pair, the price has started to show a bullish pattern since yesterday from the level of 127.00 at the opening of the Asian session.
Once the rise was made past the 128.00 level, investors started evaluating the trend change signal on the price chart following the price has also moved back above the Moving Average 50 (MA50) support level on the 1 hour time frame.
Not to stop there, the rally continued again in today's trading (Thursday) seeing a surge above last week's high of 129.300 to the latest high of around 130.00 as of early trading in the European session.
With this surge, the price continues to record its latest high since 2002 trading!
For a higher rise, it is likely that the price can reach up to the high of 132.00 maintaining the bullish trend.
But beware of a possible price drop over the weekend.
The decline will re -test the 129.300 level forming a new RBS (resistance become support) zone to support the price resuming the rise.
On the other hand if the price declines lower, the decline beyond the 128.00 level could head back up to the previous focus zone around 125.800.
