USDJPY: Are Bulls Trying to Revive the Long-Term Trend?

The USDJPY yesterday reached its highs of several weeks.

This was facilitated by:

→ a statement by the new head of the Bank of Japan, Kazuo Ueda, who made it clear that there is no need to rush to curtail the stimulus policy;

→ Friday's US employment report, which strengthened expectations of the Fed's interest rate hike in May. Unemployment fell to 3.5%, indicating the strength of the labour market. Trading on Tuesday, futures on the dollar index opened with a bullish gap;

→ US commercial bank deposits rose towards the end of March for the first time in about a month, a sign that the banking crisis is easing and the dollar is regaining confidence.

The USDJPY weekly chart may give the idea that the bulls are trying to revive a long-term uptrend from the support line (1). However, for this it is necessary to overcome the resistance (2) around 133.75, the level can serve as an indicator of the real strength of demand.

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