• USD/JPY kicks off the new week on a positive note, though the upside potential seems limited.
• A positive risk tone dents demand for the safe-haven JPY and lends some support to the major.
• Traders might now prefer to wait for the crucial BoJ and Fed policy decisions on Wednesday. 

The USD/JPY pair attracts fresh buyers during the Asian session on Monday and jumps to the 154.35 region in the last hour amid some repositioning trade ahead of this week's key central bank event risks. 

The Bank of Japan (BoJ) and the Federal Reserve (Fed) are scheduled to announce their policy decisions at the end of a two-day meeting on Wednesday. In the meantime, the risk-on impulse – as depicted by a strong bullish sentiment surrounding the global equity markets – undermines the safe-haven Japanese Yen (JPY) and assists the USD/JPY pair in regaining positive traction. Any further appreciating move, however, seems elusive in the wake of the divergent BoJ-Fed policy expectations. 

The BoJ is expected to reduce bond buying and potentially raise interest rates. In contrast, the markets have fully priced the possibility for an imminent start of the Fed's policy-easing cycle in September and a total of three interest rate cuts by the end of this year. The bets were reaffirmed by the release of the US Personal Consumption Expenditures (PCE) Price Index on Friday, which underscored an improving inflation environment and kept the US Dollar (USD) bulls on the defensive