Like all the majors, the Yen was pretty quiet in Monday trade. Everyone is most certainly waiting on the Fed and whether or not we’ll see a hike in interest rates. The USD/JPY has been on an upward trend for the last week or so as anticipation grows around what will happen in the US on the tax front and with interest rates.

I’m looking for this trend to continue as I think there is some more room to the upside. Although how far we can run is another story.

The next key level is clearly 114.00. I think we can hit that in the next session. Support in the short-term lies around 113.26 and is a place to start looking for a bounce. Clearly, 113.00 is an important level also.

For the time being, I’m just looking for bounces and I won’t be taking any long-term positions into the rate decision on Wednesday.

Key Support and Resistance Levels