Fundamental view:

The US dollar has gone back and forth against the yen during the course of the trading week. This is because there is a bit of confusion in the market as the market is likely to continue to see a lot of questions asked about the Federal Reserve, especially as the Core PCE number came out just a little bit lighter than anticipated. Overall greenback traded somewhat high compared to yen.

US GDP Sales quarterly report on 24th June and US PCE Price Index yearly report on 25th June created bearish trend whereas US Chicago Fed National Activity Index on 21st June and Japan Markit Manufacturing PMI on 23rd June created 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 Jun 28, US CB Consumer Confidence Index at Jun 29, BoJ Tankan Large Manufacturing Index, US ADP Nonfarm Employment Change at Jun 30, US Initial Jobless Claims, US ISM Manufacturing PMI at July 01 and US Nonfarm Payrolls at July 02.

USD/JPY Weekly outlook:

Technical View:

Last week’s high was 0.26% higher than the previous week. Maintaining high at 111.11 and low at 109.71 showed a movement of 140 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 111.36 may open a clean path towards 111.93 and may take a way up to 112.76. Should 109.96 prove to be unreliable support, the USDJPY may sink downwards 109.13 and 108.56 respectively. In H4 chart, Formation of Inverted ascending scallop pattern indicates reversal of the trend creating prospects of a bullish trend Along with a bullish engulfing formation braces our expectation.