Fundamental view:

Japan Prelim GDP quarterly report, Final Manufacturing PMI on 3rd Aug and favored bearish environment for the pair whereas US Final Manufacturing PMI, Construction Spending monthly report on 3rd Aug, Construction Spending monthly report on 3^rd Aug and US Unemployment Claims on 6th Aug created a bullish move

US Non-Farm Employment Change released last week was favorable for USD. Last week USD/JPY showed a bullish trend.

The major economic events deciding the movement of the pair in the next week are Japan Bank Lending yearly report at Aug 10, Japan Economy Watchers Sentiment, US Core PPI monthly report at Aug 11, US Core CPI monthly report at Aug 12, US Unemployment Claims at Aug 13, US Core Retail Sales monthly report at Aug 14.

USD/JPY Weekly outlook:

Technical View:

Last week’s high was 0.39% higher than the previous week. Maintaining high at 106.47 and low at 105.30 showed a movement of 117 pips.

In the upcoming week we expect USD/JPY to show a bullish trend. The currency pair is trading below the 100 Simple Moving Average and the MACD trades to the upside. A solid breakout above 106.49 may open a clean path towards 107.06 and may take a way up to 107.66. Should 105.32 prove to be unreliable support, the USDJPY may sink downwards 104.72 and 104.15 respectively. In H4 chart, Breakout of the Symmetrical triangle pattern to the upside indicates reversal of the trend creating prospects of a bullish trend Along with a bullish spinning top formation braces our expectation.