Fundamental view:

USD/JPY has a bullish rally in the past week. As the US yield engine continued to power the USD/JPY as the differential between Treasuries and Japanese Government Bonds almost guarantees flows into the American currency. An excellent March US payroll report also helped keep the USD/JPY stable at its high on Friday after continuous week of gains.

US Pending Home Sales m/m & EIA Cushing Crude Oil Stocks Change on 31^st March and Japan BoJ Tankan Large Manufacturing Index on 1^st April framed bearish trend whereas US Dallas Fed Manufacturing Index on 29^th March and Japan Unemployment Rate & Japan Retail Sales yearly report on 30^th March framed bullish trend for the pair.

The major economic events deciding the movement of the pair in the next week are IMF Meeting, Japan Markit Services PMI, US ISM Non-Manufacturing PMI at April 05, US JOLTS Job Openings at April 06, Japan Current Account n.s.a., FOMC Minutes at April 07, US Initial Jobless Claims and Fed Chair Powell Speech at April 08.

USD/JPY Weekly outlook:

Technical View:

Last week’s high was 1.02% higher than the previous week. Maintaining high at 110.97 and low at 109.37 showed a movement of 160 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 111.26 may open a clean path towards 111.92 and may take a way up to 112.86. Should 109.66 prove to be unreliable support, the USDJPY may sink downwards 108.72 and 108.06 respectively. In H4 chart, Formation of bullish flag pattern indicates reversal of the trend creating prospects of a bullish trend Along with a bullish engulfing formation braces our expectation.