Fundamental view:

US Crude Oil Inventories on 29th, US Advance GDP quarterly report on 30th, US Personal Spending monthly report and Chicago PMI on 31^st made the pair move upwards whereas US Core Durable Goods Orders monthly report on 27th July, Japan Retail Sales yearly report on 29th and US S&P/CS Composite-20 yearly report on 28th July created bearish move for the pair.

Japan’s plan of releasing several estimates for its economic growth in fiscal 2020 and 2021 because of the uncertainty over the corona-virus pandemic favours Yen hence USD/JPY showed a bearish trend last week.

The major economic events deciding the movement of the pair in the next week are Japan Final Manufacturing PMI, US ISM Manufacturing PMI at Aug 03, BOJ Gov Kuroda Speaks, US ISM Non-Manufacturing PMI at Aug 05, Japan Average Cash Earnings yearly report, US Unemployment Claims at Aug 06, and US Average Hourly Earnings monthly report at Aug 07.

USD/JPY Weekly outlook:

Technical View:

Last week’s high was 1.38% lower than the previous week. Maintaining high at 106.05 and low at 104.18 showed a movement of 187 pips.

In the upcoming week we expect USD/JPY to show a bullish trend. The currency pair is trading below the 200 Simple Moving Average and the MACD trades to the upside. A solid breakout above 106.59 may open a clean path towards 107.26 and may take a way up to 108.46. Should 104.72 prove to be unreliable support, the USDJPY may sink downwards 103.52 and 102.85 respectively. In H4 chart, Formation of Broadening Wedges pattern indicates reversal of the trend creating prospects of a bullish trend Along with a bullish engulfing formation braces our expectation.