The USD/JPY pair closed the week at 111.50, after had marked highest level for April at 111.77 and posted gains for second consecutive week.
The continuation of the upside move seems now to be limited due to the falling yield on 10-year Treasury along with the neutral BOJ stance, that noted positive growth, but downgraded the inflation forecast for the current year.
On the daily chart the 20-day SMA has turned to north. RSI and stochastic are placed within extreme overbought area and are keeping the bullish tone. The pair has crossed to above the 200-day SMA, whilst the 100-day SMA has slightly turned to south and is currently acting as dynamic resistance at 112.65.
How the pair will develop its direction will depend on how the market respond on Fed's monetary policy outcome next Wednesday. A bullish breakout will be more likely expected in the case of confirmation on the rate hike for next June.