Fundamental view:

The US dollar has drastically fell against the Japanese yen in the past week. US Dollar weakness was a primary theme is the reason behind this trend.US dollar fell because the bond yield markets are going crazy occasionally. As US rates have eased, helped along by a Federal Reserve that’s confident in both rates and inflation being transitory themes that require no near-term action, USD/JPY has seen strong downside momentum.

US Existing Home Sales on 22^nd April and US New Home Sales on 23^rd April favored bullish trend for the pair whereas Japan Industrial Production monthly report on 19^th April and Japan Markit Manufacturing PMI on 23^rd April favored bearish trend for the pair.

The major economic events deciding the movement of the pair in the next week are US Core Durable Goods Orders monthly report at April 26, BoJ Interest Rate Decision,  Japan Retail Sales monthly report, US CB Consumer Confidence Index at April 27, Fed Interest Rate Decision at April 28, US GDP quarterly report at April 29, and US Employment Cost Index at April 30.

USD/JPY Weekly outlook:

Technical View:

Last week’s high was 0.86% lower than the previous week. Maintaining high at 108.83 and low at 107.48 showed a movement of 135 pips.

In the upcoming week we expect USD/JPY to show a bearish trend. The currency pair is trading below the 200 Simple Moving Average and the MACD trades to the downside. A solid breakout below 107.29 may open a clean path towards 106.71 and may take a way down to 105.94. Should 108.64 prove to be unreliable resistance, the USDJPY may raise upwards 109.41 and 109.99 respectively.  In H4 chart, Formation of bearish flag pattern indicates reversal of the trend creating prospects of a bearish trend Along with a bearish engulfing formation braces our expectation.