Global macro overview for 25/02/2016:

This will be busy week for all the central banks and plenty of fundamental data from the Fed and BoJ is scheduled for release during the week. Moreover, first quarter GDP reports from the UK and US, together with inflation data from the eurozone and the US as well are ready to be released later on the week. The most anticipated event is surely the BoJ policy meeting and interest rate decision (on Thursday), because the BoJ is expected to announce new stimulus measures. The Fed announcement on Wednesday is the event to keep an eye on as well, mainly because the unexpected rate hike might cause a high volatility environment in financial markets. In conclusion, this seems to be the week to keep traders on their toes, so caution and proper money management are strongly advised.

Let's now take a look at the USD/JPY technical picture on the 4H time frame ahead of the BoJ meeting. The market has managed to break out above the technical resistance at the level of 110.62 and is now trading above the 61% Fibo at the level of 111.45. It looks like the bulls are in control over the market, but the green trend line hasn't been tested yet, so the bears might counter-attack any time now.