Fundamental view:

The USD/Yen closed higher last week, but the gains were skewed by last Monday’s huge rally in reaction to the news that Pfizer had developed a COVID-19 vaccine with 90% efficiency. After that initial thrust, the Forex pair spent most of the week trading sideways to lower.

The dollar headed for its best week against the Japanese Yen since March as COVID-19 vaccine news lured investors out of the Japanese safe haven, though riskier currencies have made little headway as the pandemic worsens in Europe and the United States.

US IBD/TIPP Economic Optimism on 10^th November and Japan Tertiary Industry Activity on 12^th November created bearish atmosphere for the pair whereas Japan M2 Money Stock yearly report on 11^th November created a bullish atmosphere.

The major economic events deciding the movement of the pair in the next week are BoJ Board Member Masai Speech, NY Fed Empire State Manufacturing Index at Nov 16, US Retail Sales monthly report at Nov 17, US Building Permits at Nov 18, Japan CPI yearly report, US Initial Jobless Claims at Nov 19, and G20 Meetings at Nov 20.

USD/JPY Weekly outlook:

Technical View:

Last week’s high was 0.31% higher than the previous week. Maintaining high at 105.67 and low at 103.19 showed a movement of 249 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 105.81 may open a clean path towards 106.99 and may take a way up to 108.30. Should 103.33 prove to be unreliable support, the USDJPY may sink downwards 102.01 and 100.84 respectively. In H4 chart, Formation of ABCD pattern indicates reversal of the trend creating prospects of a bullish trend Along with a bullish engulfing formation braces our expectation.