Fundamental view:

The US dollar has rallied a bit against the Japanese yen in the previous week. In Japan the most up-to-date information, the Eco Watchers Surveys, Outlook and Current for November from the Cabinet Office, saw sharp declines from their pandemic highs in October.

US Revised Nonfarm Productivity quarterly report & Revised Unit Labor Costs quarterly report on 8^th Dec and US JOLTS Job Openings on 9^th Dec favors uptrend for the pair whereas US Consumer Credit monthly report & Japan Final GDP Price Index yearly report on 8th Dec and US Federal Budget Balance on 11^th Dec favors downtrend for the pair.

The major economic events deciding the movement of the pair in the next week are Japan Markit Manufacturing PMI, US Retail Sales monthly report, Fed Interest Rate Decision at Dec 16, US Building Permits, US Initial Jobless Claims at Dec 17, and BoJ Interest Rate Decision at Dec 18.

USD/JPY Weekly outlook:

Technical View:

Last week’s high was 0.17% lower than the previous week. Maintaining high at 104.57 and low at 103.82 showed a movement of 75 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 downside. A solid breakout above 104.47 may open a clean path towards 104.90 and may take a way up to 105.22. Should 103.72 prove to be unreliable support, the USDJPY may sink downwards 103.40 and 102.97 respectively. In H4 chart, Formation of bullish shark pattern indicates reversal of the trend creating prospects of a bullish trend Along with a bullish spinning top formation braces our expectation.