FXStreet (Guatemala) - USD/JPY has been drifting to the downside from the highs of 118.64 overnight. There is an air of caution in the markets still around the price of oil commodities in general, China and on a week that brings us the BoJ. The strength of the yen has been of some concern due to its rapid acceleration of late and an easing bias is favored given the price of oil and Kuroda on Saturday, in an event in Davos, BoJ Governor said that the BoJ “won't hesitate adjusting policy, including easing policy, if necessary to achieve our 2 percent price target”. For the day ahead there is little of note although of course China will be on the minds of the market. Kuroda was also reported saying that there have been reports China should consider tightening capital controls while trying to stabilize the capital outflows will be one huge task at the hands of the PBoC. Reports form HK today are that the PBoC has asked the bank of china to increase the interest rate on yuan to try and discourage shorting the yuan with tom-next less cost effective in the fx space for sellers. We await today's fix and the Chinese stock opening. USD/JPY levels Meanwhile, Valeria Bednarik, chief analyst at FXStreet explained, "In the 4 hours chart, the Momentum indicator continues retreating from overbought readings, while the RSI heads slightly lower, but around 60. The 118.90 stands for the 38.2% retracement of the 123.54/115.96 decline, and it would take a clear break above it to confirm a continued advance during the upcoming sessions, up to 119.70." For more information, read our latest forex news.