Fundamental view:

In the last week, Japan National Core CPI at 20^th July, US President Trump Speech at 21st July created a bullish move for the pair whereas US Unemployment Claims at 23rd July and US Flash Manufacturing PMI at 24th July, US New Home Sales report at 24^th July created a bearish trend for the pair.

The upward swing of covid 19 curve in US suppressed dollar against Yen thus last week USD/JPY reflected a bearish trend.

The major economic events deciding the movement of the pair in the next week are Bank of Japan Core CPI yearly report at Jul 27, US CB Consumer Confidence at Jul 28, FOMC Press Conference at Jul 29, US Advance GDP quarterly report, Unemployment Claims at Jul 30, US Revised UoM Consumer Sentiment at Jul 31.

USD/JPY Weekly outlook:

Technical View:

Last week’s high was 0.10% higher than the previous week. Maintaining high at 107.53 and low at 105.68 showed a movement of 186 pips.

In the upcoming week we expect USD/JPY to show a bearish trend. The currency pair is trading below the 200 Simple Moving Average and the MACD trades to the Downside. A solid breakout below 105.36 may open a clean path towards 104.59 and may take a way down to 103.50. Should 107.21 prove to be unreliable resistance, the USDJPY may raise upwards 108.30 and 109.07 respectively. In H4 chart, Formation of Bearish Pennant indicates reversal of the trend creating prospects of a bearish trend Along with a 3 black crow’s formation braces our expectation.