FXStreet (Guatemala) - USD/JPY opened in Tokyo slightly bid before selling off a hand full of pips while the US was a positive close with a rebound in oil and good earnings, but since then, the oil news has nerved markets again. The price is testing the upside, but failing to convict much through recent highs and capped before the 22nd Jan 118.72 high. The week ahead is all about the BoJ and FOMC. While markets are not expecting action from either [party so soon in the year, there has been enough going on to possibly force the hand of the BoJ into easing further while they are concerned for the value of the Yen appreciating so fast in such a short time frame while their inflation targeting is disappearing over the horizon. With the FOMC, there may not be too different in the accompanying statement, but should there be an element of dovishness that could signal that the FOMC are on hold for the foreseeable future, especially witt the price of oil and external factors such as China weighing on the global outlook and making the conditions unsuitable to continue with their normalisation of rates strategy, propelling the dollar to the downside. USD/JPY levels Technically, Valeria Bednarik, chief analyst at FXStreet explained, "In the 4 hours chart, the Momentum indicator heads south in positive territory, and aims to cross its mid-line towards the downside, while the RSI indicator remains flat around 58. The pair has a major resistance at 118.90, the 38.2% retracement of the same decline and Friday's high. It would take some steady gains beyond the level to see the rally extending, up to 119.70 during the upcoming sessions. " For more information, read our latest forex news.