Fundamental view:

The US dollar has rallied again against the Japanese yen. The interest rate differential between the United States and Japan, is the main driver of this market.  Non-Farm Payroll numbers coming out, and that of course can cause a lot of noise in this pair.

US ISM Manufacturing Prices Paid on 1^st March and Japan Jobs to Applicants Ratio & USISM-NY Business Conditions Index on 2^nd March favored bearish trend whereas  US Markit Services PMI & ADP Nonfarm Employment on 3^rd March and US Initial Jobless Claims & Factory Orders on 4^th March favored bullish trend for the pair.

The major economic events deciding the movement of the pair in the next week are Japan GDP quarterly report at Mar 08, BoJ Corporate Goods Price Index monthly report, US CPI monthly report, EIA Crude Oil Stocks Change at Mar 10, US JOLTS Job Openings, Initial Jobless Claims at Mar 11, and US Michigan Consumer Sentiment at Mar 12.

USD/JPY Weekly outlook:

Technical View:

Last week’s high was 1.80% higher than the previous week. Maintaining high at 108.65 and low at 106.37 showed a movement of 228 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 109.13 may open a clean path towards 110.03 and may take a way up to 111.41. Should 106.85 prove to be unreliable support, the USDJPY may sink downwards 105.47 and 104.57 respectively. In H4 chart, Formation of ascending scallop pattern indicates prospects of a bullish trend; Along with a bullish engulfing formation braces our expectation.