Fundamental view:

The US dollar initially fell a bit during the week, but then turned around to break above the resistance of 105.70. Britain CBI Industrial Order Expectations on 22^nd Sept and US HPI monthly report on 23^rd Sept created upward movement for the pair whereas Britain CBI Realized Sales on 24^th Sept and Britain GfK Consumer Confidence on 25^th Sept created downward movement for the pair.

At this point, the market is likely to see continued upward pressure due to the strength of dollar, at least in the short term.

The major economic events deciding the movement of the pair in the next week are Japan Retail Sales monthly report, US CB Consumer Confidence Index at Sep 29, BoJ Tankan Large Manufacturing Index, US GDP quarterly report at 30 Sep, US ISM Manufacturing PMI at Oct 01, and US Nonfarm Payrolls at Oct 02.

USD/JPY Weekly outlook:

Technical View:

Last week’s high was 0.44% lower than the previous week. Maintaining high at 105.70 and low at 104.00 showed a movement of 170 pips.

In the upcoming week we expect USD/JPY to show a bullish trend. The currency pair is trading above the 100 Simple Moving Average and the MACD trades to the upside. A solid breakout above 106.16 may open a clean path towards 106.78 and may take a way up to 107.86. Should 104.46 prove to be unreliable support, the USDJPY may sink downwards 103.38 and 102.76 respectively. In H4 chart, Formation of rounding bottom indicates prospects of a bullish trend Along with a bullish three inside up candle formation braces our expectation.