Fundamental view:

The US dollar has gone back and forth during the course of the week, ultimately forming a bit bull candle. The broad dollar’s demand has underpinned the pair, although the poor performance of government bond yields limited the advance.

Japan Coincident Index & Japan Leading Index on 7th June and Japan BoJ Money Stock yearly report on 9th June framed bearish trend whereas US EIA Crude Oil Stocks Change on 9th June and US Michigan Consumer Sentiment on 11th June favored bullish trend for the pair.

The major economic events deciding the movement of the pair in the next week are Japan Tertiary Industry Activity Index monthly report, US Retail Sales monthly report, Fed Industrial Production yearly report at Jun 15, US EIA Crude Oil Stocks Change, Fed Interest Rate Decision at Jun 16, US Philadelphia Fed Manufacturing Index, US Initial Jobless Claims at Jun 17 and BoJ Interest Rate Decision at Jun 18.  

USD/JPY Weekly outlook:

Technical View:

Last week’s high was 0.44% lower than the previous week. Maintaining high at 109.83 and low at 109.18 showed a movement of 65 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 109.93 may open a clean path towards 110.20 and may take a way up to 110.58. Should 109.28 prove to be unreliable support, the USDJPY may sink downwards 108.90 and 108.63 respectively. In H4 chart, Formation of semi-w pattern breakout favors prospects of a bullish trend Along with a bullish engulfing formation braces our expectation.