Technical Outlook: Price action in USDJPY remains biased to the downside although multiple retest of the support zone near 105.78 - 105.42 has proved the support level to hold the declines. With the USDJPY seen consolidating along the second falling trend line, we expect to see some upside bias building up. The divergence on the Stochastic oscillator remains in play for the moment which adds to the possible upside breakout in price. However, with price trading near the support level a possible downside breakout could potentially give way to further declines in USDJPY. Watch for price action to form a higher low off the support level which could indicate the upside move in prices. Resistance at 108.43 remains the key level that could be tested in this case. Fundamental Outlook: Data from Japan this week is quiet with only the flash manufacturing PMI due on Thursday. Later on the same day, the national core CPI data will be released. The market data this week is unlikely to move the Japanese yen much. However, the ongoing uncertainty surrounding Trump's policies on monetary policy is likely to influence the market sentiment which could see some volatility in the yen. Previous USDJPY Weekly Forex Forecast

USDJPY Weekly Forex Forecast - 19th to 23rd Mar 2018