FXStreet (Guatemala) - USD/JPY is weighted to the downside in a bearish formation on the charts while Tokyo gets going and offers emerge in the open extending losses from overnight highs at 120.40 to score a low today so far at 120.23. The markets have been volatile, on light volume mind you, as we head towards year ending 2015. For the New Year, we spring into action with the FOMC minutes while markets try to gauge just how gradual the incremental rate rises by the Fed are going to be throughout 2016. The recent data from the US will kick in next year in that respect with the recent release of core PCE inflation that registered a stronger than expected 1.4% y/y for example, which is essentially only a moderate pace of inflation. Moreover, as analysts at Rabobank noted, "The USD doing a lot of the heavy lifting in terms of monetary tightening we expect that the Fed will hike no more than twice in 2016 and that this relatively gradual pace of rate hikes should help keep USD strength in check." USD/JPY levels Technically, Valeria Bednarik, chief analyst at FXStreet explained that the recovery stalled short from completing a pullback to the daily ascendant coming from August broken last week, currently offering a strong resistance around 121.10. "The technical bias is still bearish, despite the lack of directional strength, as in the 4 hours chart the price is far below its 100 and 200 SMAs, both with sharp bearish slopes, whilst the technical indicators aim slightly higher, but within bearish territory." For more information, read our latest forex news.