Fundamental view:

Japan Prelim GDP Price Index yearly report and Prelim GDP quarterly report on 17^th Aug and Japan Core Machinery Orders at 19^th Aug created a bullish market for the pair whereas US Empire State Manufacturing Index on 17^th Aug and US Unemployment Claims  on 20^th created a bearish environment for the pair.

Yen became stronger than Dollar due the positive Japanese core consumer index of the previous week. But we expect that yen will struggle against the recovering dollar.

The major economic events deciding the movement of the pair in the next week are BOJ Core CPI yearly report, US CB Consumer Confidence at Aug 25, US Core Durable Goods Orders monthly report at Aug 26, Japan All Industries Activity monthly report, US Prelim GDP quarterly report, Fed Chair Powell Speaks at Aug 27, Jackson Hole Symposium at Aug 27 & 28.

USD/JPY Weekly outlook:

Technical View:

Last week’s high was 0.37% lower than the previous week. Maintaining high at 106.65 and low at 105.10 showed a movement of 155 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 downside. A solid breakout above 106.61 may open a clean path towards 107.41 and may take a way up to 108.16. Should 105.06 prove to be unreliable support, the USDJPY may sink downwards 104.30 and 106.51 respectively. In H4 chart, Formation of Cup and handle pattern creating prospects of a bullish trend Along with a bullish engulfing formation braces our expectation.