USD/JPY is trading at 146.271, 0.12% up since previous day close. The YEN surges higher on Monday after BoJ Governor Kazuo Ueda hinted to end negative interest rate cycle when the targeted 2% inflation rate is achieved. The Japan’s Money Stock remained steady at 2.5% as expected while the focus will be on the result of Prelim Machine Tool Orders data due to be released today. Besides this, the soft USD ahead of the U.S CPI data release led the buying pressure in other major currencies. Uncertain Fed monetary outlook in upcoming meeting & ongoing U.S-China trade woes remains vital for safe-haven instruments. Buying pressure may be established in YEN against the USD on daily basis.

US30 is trading at 34629.3, 0.02% up since previous close. The U.S markets seem to be trading in a tight range ahead of the result of U.S inflation rate data which is to be issued on Wednesday. This may contribute in Fed’s monetary decision making in its upcoming meeting; wherein the traders expect a no-change in policy. Last week, the tension between U.S & China escalated after the former imposes few export curbs on Chinese tech companies in retaliation to Chinese actions which subdued the equity markets. The focus will be on U.S economic data releases due later in this week. As seen in the chart, the index US30 is hovering near lower trend-line of channel pattern & hence, slight buying momentum may be recommended if sustained the level.

WTI Oil is trading at $87.10, 0.06% down since previous day close. The Oil prices slightly retreated on Monday after rallying to higher side last week amid mixed USD ahead of U.S CPI data release event. The Saudi Arabia & Russia announced their Oil output cuts plan of 1 million bpd & 300,000 bpd respectively until year-end. This widely cushioned the prices. The U.S Energy Information Administration (EIA) report showed a fall in Oil inventory levels by 6.3 mbpd against the expected fall of 1.8 mbpd. The focus will be IEA & OPEC monthly report which are to be released this week. The cautious trading may be recommended for the day in WTI Oil since the commodity is trading above the major resistance level.