The pair is trading up to the highs for the day now as the BOJ reaffirmed that they are sticking with more easy policy for now.
There was a sharp drop in price yesterday as markets got a bit excited for a potential surprise shift by the BOJ after having been caught out by the SNB policy pivot. Alas, Kuroda & co. decided to stick with its guns - at least for now.
That has seen USD/JPY turn higher and is trading near the highs for the day around 134.50. The drop yesterday was defended around the 38.2 Fib retracement level at 132.06 and that suggests that buyers are still staying in the game for the most part.
A retest of the highs earlier in the week at around 135.47-59 will be key but a weekly close above the 135.00 level in itself will give buyers much confidence to try and establish the next upside leg.
That said, I would argue that further gains may not run as quickly if Treasury yields remain more heavy and as traders are keeping a close eye on the BOJ in case they follow the SNB into a policy pivot in the months ahead.