Fundamental view:

Japan Monetary Policy Statement at Jul 15 supported yen and henceforth created bearish move for the pair whereas Unfavorable Japan Tertiary Industry Activity monthly report at Jul 13  and Philly Fed Manufacturing Index at Jul 16 acted as a catalyst for the uptrend of the pair.

Reports like Revised Industrial Production of previous week and tweet of Boj’S Gov Kuroba on July 15^th that Japan is in extremely severe situation portrayed the struggling pace of Japan thus last week USD/JPY reflected a bullish trend.

The major economic events deciding the movement of the pair in the next week are Japan National Core CPI yearly report at Jul 20, Japan Flash Manufacturing PMI,US Crude Oil Inventories at Jul 22, US Unemployment Claims at Jul 23, US Flash Manufacturing PMI at Jul 24.

USD/JPY Weekly outlook:

Technical View:

Last week’s high was 0.33% lower than the previous week. Maintaining high at 107.43 and low at 106.66 showed a movement of 77 pips.

In the upcoming week we expect USD/JPY to show a bullish trend. The currency pair is trading below the 100 Simple Moving Average and the MACD trades to the upside. A solid breakout above 107.41 may open a clean path towards 107.80 and may take a way up to 108.17. Should 106.64 prove to be unreliable support, the AUDUSD may sink downwards 106.27 and 105.88 respectively. In H4 chart, Formation of Double bottom indicates of the trend creating prospects of a bullish trend Along with that doji formation braces our expectation.