Fundamental view:

The USD/JPY has rallied significantly during the course of the week, reaching towards the 106.50 level. Japan Unemployment Rate, Final Manufacturing PMI on 1^st Sept and Trade Balance on 3^rd Sept favored uptrend for the pair whereas US ISM Manufacturing PMI, Wards Total Vehicle Sales monthly report  on 2^nd Sept and US Factory Orders quarterly report on 4^th Sept favored downtrend for the pair.

A bit of volatility is expected in the upcoming week with the reaction to the jobs number.

The major economic events deciding the movement of the pair in the next week are Japan Final GDP quarterly report at Sep 07, US IBD/TIPP Economic Optimism at Sep 08, Japan Producer Price Index (PPI) yearly report, Unemployment Claims, Crude Oil Inventories at Sep 10, and US Core CPI monthly report at Sep 11.

USD/JPY Weekly outlook:

Technical View:

Last week’s high was 0.37% lower than the previous week. Maintaining high at 106.55 and low at 105.29 showed a movement of 126 pips.

In the upcoming week we expect USD/JPY to show a bearish trend. The currency pair is trading above the 200 Simple Moving Average and the MACD trades to the downside. A solid breakout below 105.50 may open a clean path towards 104.76 and may take a way down to 104.24. Should 106.76 prove to be unreliable resistance, the USDJPY may raise upwards 107.28 and 108.02 respectively.  In H4 chart, Formation of flag pattern indicates reversal of the trend creating prospects of a bearish trend Along with a dark cloud cover formation braces our expectation.