Technical Outlook: The USDJPY was seen initially slipping below the 105.44 - 105.14 level of support but price action quickly recovered from this level following the bullish engulfing pattern that was formed. This was later seen by a stronger bullish candlestick off the support level. The near term consolidation could signal that price action will see some pullback ahead of further gains. A close above the previous high formed at 106.820 level of resistance could signal further gains. Watch for price action to briefly retest the support level where a potential right shoulder could be formed. A reversal off the support could signal minimal gains toward 108.14 level. Fundamental Outlook: The sentiment in the Japanese yen is most likely to be influenced by the global themes playing out. The Japanese yen continues to remain in favor especially amid rising uncertainty in the global markets. On the economic front, the start of April will see the release of the quarterly Tankan manufacturing survey results. Manufacturing companies have been seen slowly improving their outlook and this could result in a positive beat on the estimates. The Bank of Japan will be holding its monetary policy meeting later in April. The central bank is expected to keep interest rates and its QE program unchanged. However, the recent uptick in consumer prices, albeit still far away from the BOJ's 2% inflation target rate could keep market speculators bullishly bid on the yen. Previous USDJPY Monthly and Weekly Forex Forecast

USDJPY Monthly Forex Forecast for April 2018