FXStreet (Guatemala) - EUR/JPY is in a consolidative phase while the upside is limited in the single currency on a dovish stance from the ECB and much of the same for the Yen due to the BoJ and markets starting to price in action at some stage soon from the Central Bank. This week is the BoJ and while it might be too early to see them act it is not ruled out. "Downside risks to the BoJ's inflation outlook are increasing, which is likely to prompt downward revisions to their inflation forecasts at this week's meeting," explained analysts at Bank of Tokyo Mitsubishi. The FOMC is also this week and a dovish stance in the statement could lead to a risk-on scenario in the short-term which would not be supportive of the Yen, unless, however, alarm bells signal that the Fed can't carry on hiking rates and then the confidence falls out the bottom of the markets, stocks crash and we see that classic flight to safety for the year ahead is not looking very bright. EUR/JPY levels Technically, the 130 handle would need to be broken for a reversal to take shape while otherwise minor corrections will only be better entry points for a targeted move towards 126.41 and the monthly 50 sma. In the meantime, the picot stands at 128.28 and S2 stands at 127.57. A break up to the upside has 128.99 S2. For more information, read our latest forex news.