FXStreet (Guatemala) - USD/JPY is currently trading at 121.24 with a high of 121.44 and a low of 121.23. USD/JPY is under pressure, despite equities opening higher. However, the price of the Yen is still in bullish territory, trading above the rising 200 DMA on the daily chart that currently resides at 120.97 with price accelerating from the 20 DMA at 119.90. Equities had been performing well last week and are continuing to do so as Tokyo gets underway in the wake of liquidity in the market as PBoC cut rates yet again at the same time that the ECB announced problematic areas that will likely require an extension/expansion of the QE programme. Central Banks risk factors to USD/JPY This week will of course be crucial with the FOMC and BoJ approaching. It is widely expected that neither will act although there is greater risk that the BoJ may do so than earlier on in the month leaving the Yen compromised and risks to the downside if so. Inflation in Japan is still well off target of 2.0% which stands to reason and thus further easing is not out of the question. The BoJ's semi-annual outlook on the economy should be revealing. USD/JPY levels To the upside, there are the late August highs at 121.76/79 and the 61.8% retracement which could prove to be a tough area of resistance. Beyond there, 123.33and the 78.6% retracement guards 125.00/28 August highs. To the downside, the key level on target comes as the 200 DMA at 120.97. For more information, read our latest forex news.