Fundamental view:

The US dollar has gone back and forth during the trading sessions that make up the week against the Japanese yen, as the ¥105 level continues to be resistance, but at the same time the ¥104 level has been rather supportive. Japanese statistics showed that the economy has not recovered from the global slump of the second quarter. The Bank of Japan lowered its growth forecast and left the overnight call rate unchanged as expected.

US New Home Sales on 26th October and US CB Consumer Confidence  on 27th October created bearish environment for the pair whereas Japan Retail Sales on 28th October and Japan Consumer Confidence on 29^th October created bullish environment for the pair.

The major economic events deciding the movement of the pair in the next week are Japan Markit Manufacturing PMI, US ISM Manufacturing PMI at Nov 02, BoJ Monetary Policy Meeting Minutes at Nov 03, US ADP Nonfarm Employment Change, ISM Non-Manufacturing PMI at Nov 04, Fed Interest Rate Decision at Nov 05, and US Nonfarm Payrolls at Nov 06.

USD/JPY Weekly outlook:

Technical View:

Last week’s high was 0.65% lower than the previous week. Maintaining high at 105.05 and low at 104.02 showed a movement of 103 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 105.14 may open a clean path towards 105.61 and may take a way up to 106.17. Should 104.11 prove to be unreliable support, the USDJPY may sink downwards 103.55 and 103.08 respectively. In H4 chart, Formation of cup and handle pattern indicates reversal of the trend creating prospects of a bullish trend Along with a bullish 3 white soldiers formation braces our expectation.