Economists at Barclays Research see the USD/JPY pair trapped in a 126.50-130.00 this week. They highlight the key technical levels to watch.

Resistance comes initially at 129.40

"We see USD/JPY trading in a technical range of 126.5-130.0 this week.” 

“On the downside, we see support at 127.10 (daily Ichimoku conversion line), 126.50 (last week’s low), 125 (psychological threshold) and 123.90 (daily Ichimoku baseline).”

"Resistance comes initially at 129.40 (recent high). Beyond that, the focus will be whether the pair can break the psychological threshold of 130."