The dollar has gained 2% over the past three days, but momentum is waning.

The new governor of the Bank of Japan, Kazuo Ueda, pledged to continue his predecessor's ultra-lax monetary policy.

The USD/JPY pair reached an intraday peak of 134.70, a level not seen for five weeks. Today marked the third consecutive day in which the dollar rose against a weakening yen before levelling off. Multiple variables contributed to the sustained upswing. Yes, technical analysts will be acknowledged.

First, Japan's central bank pledged to maintain its ultra-lax monetary policy of the past decade. Kazuo Ueda, the newly appointed governor of the Bank of Japan, pledged to follow in the footsteps of his predecessor Haruhiko Kuroda and maintain extremely low interest rates for the foreseeable future.

In addition, the US dollar appears to have regained its footing in the southern regions after days of meandering. On Monday, the USD/JPY exchange rate surpassed two important technical levels – the 50-day moving average and the 100-day moving average – propelling it higher.