FXStreet (Guatemala) - USD/JPY is making a good recovery from the test of the lower end of the new trading range and has accumulated space in bullish territory above the 200 SMA on the hourly chart and the 20 DMA at 122.70. 124.00 is the top of the recent range and within a weaker than expected inflation environment that persists in Japan, there could be fundamental arguments for a continuation of the bullish trend. Core inflation eased to 0.7% Y/Y, down from 0.9% in September while household spending retreated 2.4% Y/Y in October, equating to low price growth and pressures for more stimulus from the BoJ. OPEC will be one to watch this week in this respect. More cases for the upside come in from analysts at TD Securities who said, "We still do not think USD/JPY has peaked. As the Fed is finally about to embark on its tightening cycle, we expect USD/JPY to resume appreciating toward 130 in 2016." The Nonfarm Payrolls data will be key this week while analysts at Nomura explained, "the last print was very strong, which pushed up the likelihood of a December rate hike, " but, they expect a slower pace of job gains than the 271k total gain in October. USD/JPY levels Technically, 122.92 recent highs are targeted before 123.20 resistance through R1. Until the 18th August highs of 124.46 are broken, we remain range trading until the price can break away from the cluster of MA's and the July to end of August rising channel congestion. A break below the 122 handle targets the 121.77 100 DMA and 200 DMA at 121.46. The psychological 118-120 level are medium term psychological levels to the downside. 122.27 (S2) is 121.47 29 Oct highs. For more information, read our latest forex news.