Fundamental view:

USD/JPY showed a mixed trend for the last week. Greenback lost its strength against Yen. The major news for this is the diagnosis of President Trump and First Lady Melania with COVID-19 on Friday.

Japan Tankan Manufacturing Index on 1^st Oct and US Unemployment Rate on 2^nd Oct favored uptrend for the pair whereas US Goods Trade Balance on 29th sept, Japan Prelim Industrial Production monthly report on 30^th Sept and Consumer Confidence on 2^nd Oct favored downtrend for the pair.

The major economic events deciding the movement of the pair in the next week are BoJ Governor Kuroda Speech, US ISM Non-Manufacturing PMI at Oct 05, Fed Chair Powell Speech at Oct 06, EIA Crude Oil Stocks Change at Oct 07, Japan Household Spending yearly report, and US Initial Jobless Claims at Oct 08.

USD/JPY Weekly outlook:

Technical View:

Last week’s high was 0.0.10% higher than the previous week. Maintaining high at 105.80 and low at 104.94 showed a movement of 86 pips.

In the upcoming week we expect USD/JPY to show a bearish trend. The currency pair is trading below the 200 Simple Moving Average and the MACD trades to the downside. A solid breakout below 104.91 may open a clean path towards 104.49 and may take a way down to 104.05. Should 105.77 prove to be unreliable resistance, the USDJPY may raise upwards 106.22 and 106.63 respectively. In H4 chart, Formation of Symmetrical triangle pattern breakout indicates reversal of the trend creating prospects of a bearish trend Along with a bearish engulfing formation braces our expectation.