Technical Outlook: USDJPY fell back to test 102.00 - 102.25 as we noted in last week's report. We expect further declines to continue after the bearish divergence is seen. A retest to 100.75 - 100.80 is therefore very likely although prices are currently trading above the 102.00 - 102.25 support. There is a risk of USDJPY continuing higher, but this could sooner or later result in a large correction to the downside. Therefore, patience will be key in trading USDJPY as 100.8 - 100.75 offers a better level to long from. A close below 99.88 could signal invalidation to the bullish bias. Fundamental Outlook: A quiet week for the yen, focus will be the US economic data which will be the main catalyst for USDJPY. As speculation for a US rate hike comes into focus, the yen is likely to stay sensitive to US economic data. In particular, the US retail sales and Friday’s consumer inflation figures will be the key economic data to pay attention to.

USDJPY Weekly Forex Forecast - 19th to 23rd Sept 2016 - BULLISH

Price momentum in USDJPY and with stochastic confirmation provided us enough confidence that USDJPY would likely be heading up north this coming week. We have a good feeling that the bears are ready to step aside and let Bulls run the show this week.