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USD/JPY has perhaps been the standout, as traders speculate on a weaker yen heading into some key releases for Japan this week. While today is a holiday for Japan USD/JPY has managed to nudge up to a two week high. The pair is now back above ¥120.00 and is still far from overbought territory. With the current momentum, I feel the pair could be headed back to test early December highs of ¥121.85 in the near term. There is plenty of activity in Japan this week including minutes from Friday’s Bank of Japan meeting and Kuroda’s speech which both hit the wires in the middle of this week. While the BoJ didn’t ease further on Friday, Japan releases revised inflation forecasts in January and also announces the new cabinet. From an inflation side of things, weaker oil prices are expected to force some lukewarm projections. We’ll get a better indication of Japan’s inflation when the country releases CPI readings on Friday. All this data and economic events are likely to keep traders speculating on a weaker yen and in turn further USD/JPY gains.