Fundamental view:
Positive economic data out of the United States appears to have been the primary driver behind the USD/JPY exchange rate’s recent recovery from the July low, as investors mull the lack of progress in fiscal stimulus talks between Republicans and Democrats. Current Account on 11th August, Japan PPI yearly report on 13th August created a bearish atmosphere for the pair whereas US JOLTS Job Openings on 10th Aug, CPI monthly report on 12th August created a bullish atmosphere.
The better than expected report of US in the past week created a bullish environment for the pair.
The major economic events deciding the movement of the pair in the next week are Japan Revised Industrial Production monthly report at Aug 17, US Crude Oil Inventories, FOMC Meeting Minutes, OPEC-JMMC Meetings at Aug 19, Japan National Core CPI yearly report and Unemployment Claims at Aug 20.
USD/JPY Weekly outlook: