Fundamental view:

The pair showed a mixed trend last week as US and Japanese economic and central bank developments failed to provide direction or incentive for movement. Japanese statistics showed some improvement in the August measures but were far short of a robust recovery. NFIB Small Business Index on 8^th Sept and US Core CPI monthly report on 10^th Sept boosted uptrend for the pair whereas US Consumer Credit on 9^th Sept and Japan Core Machinery Orders on 10^th Sept favored downtrend for the pair.

American statistics were mixed in the last week and the greenback stayed under pressure which leads to the bearish candle.

The major economic events deciding the movement of the pair in the next week are US Core Retail Sales monthly report, FOMC Economic Projections at Sep 16, Japan Monetary Policy Statement, BOJ Press Conference, Unemployment Claims at Sep 17, and US CB Leading Index monthly report at Sep 18.

USD/JPY Weekly outlook:

Technical View:

Last week’s high was 0.15% than the previous week. Maintaining high at 106.38 and low at 105.79 showed a movement of 59 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 106.42 may open a clean path towards 106.70 and may take a way up to 107.01. Should 105.82 prove to be unreliable support, the USDJPY may sink downwards 105.51 and 105.23 respectively. In H4 chart, if breakout of the Symmetrical triangle is to the upside then bullish expectation is favored. Also to be noted spinning top formation exerts the expectation of uptrend for the pair.