Fundamental view:

Greenback continued to be in uptrend in the early part of the week  but Thursday’s finished at 109.23 and it set the stage for an easy traverse on Friday and it ran straight to the 12-month high. American Treasury rates and improved US data were the main source of dollar strength. The massive support the Bank of Japan (BOJ) is providing to equity prices may be having the opposite effect on perception, by adding strength to the yen.

US Chicago Fed National Activity Index on 22^nd March and US Durable Goods Orders monthly report on 24^th March framed bearish atmosphere for the pair whereas US GDP quarterly report and US initial Jobless claims on 25^th and Japan Tokyo CPI yearly report framed bullish trend for the pair.

The major economic events deciding the movement of the pair in the next week are Japan Retail Sales monthly report at Mar 29, US CB Consumer Confidence Index at Mar 30, BoJ Tankan Large Manufacturing Index, US ADP Nonfarm Employment Change at Mar 31, US Initial Jobless Claims, US ISM Manufacturing PMI, OPEC Meeting at April 01 and US Nonfarm Payrolls at April 02.

USD/JPY Weekly outlook:

Technical View:

Last week’s high was 0.44% higher than the previous week. Maintaining high at 109.85 and low at 108.41 showed a movement of 144 pips.

In the upcoming week we expect USD/JPY to show a bullish trend. The currency pair is trading above the 200 Simple Moving Average and the MACD trades to the upside. A solid breakout above 110.18 may open a clean path towards 110.73 and may take a way up to 111.62. Should 108.74 prove to be unreliable support, the USDJPY may sink downwards 107.85 and 107.30 respectively. In H4 chart, Formation of ascending triangle pattern breakout creating prospects of a bullish trend Along with a three outside up pattern formation braces our expectation.