• China's support of Russia's military is expected to underpin the safe-haven appeal.

• The key events this week to keep an eye on are the interest rate decisions by the Fed and BOJ.

The USD/JPY is rising sharply, as investors support the greenback against Japanese yen due to a possible interest rate rise from the Federal Reserve (Fed), in Wednesday's monetary policies meeting. The major has continued its winning streak of six days and is now aiming to regain its 5-year high of 118.66.

The US Dollar Index (DXY), is trading at 99.00. Investors are waiting for the announcement from the Fed to initiate new positions. A Fed interest rate increase is very likely, but it is important to know the extent of that hike. Investors also want to know more about the latest developments in the Russia-Ukraine conflict. After Moscow asked Sino for military support during the invasion of Ukraine, the US claimed that China was willing to provide military aid to Russia. China denied all requests.

Later this week, the interest rates decision by Bank of Japan (BOJ), is also due. The BOJ is keeping its interest rate at the same level and will continue to monitor the situation in Japan's rising chances of stagflation. The financial flows of major importers have been affected by rising prices for various commodities following the attack on Ukraine. Japan is a major oil importer and a major source of base metals. This is affecting its fiscal mathematics.