The yen extended gains against the dollar, breaking through the 152 threshold. President Trump's visit reminded traders that neither the U.S. nor Japan welcomes excessive or rapid yen depreciation. For the yen, this movement suggests 153 may represent the ceiling for so-called "high-market trading."

With both the Federal Reserve and Bank of Japan holding policy meetings later this week, this scenario warrants closer attention. The Fed will likely leave the door open for another December rate cut after delivering an expected reduction on Wednesday.

As previously noted, the BOJ also has compelling reasons to implement policies curbing yen weakness. Rising inflationary pressures in Japan create potential for earlier-than-anticipated tightening signals, despite consensus expectations for unchanged policy this week.

The dollar/yen's strong rally following Masayoshi Amari's election victory appears to have lost momentum.