Technical Outlook: USDJPY posted multiple attempts near 111.65 but failed as noted in last week's analysis. This indicates a near term pullback in prices as the U.S. dollar is likely to test the e11.65 resistance level once again. Notice that the daily chart shows multiple inside bars being formed in the past three sessions which indicates a potential breakout that is likely to come. Look to purchase USDJPY on any dips, potentially near 110 - 109.50 levels, as we can expect another go towards 111.65 followed by a longer term rally towards 115.00. Fundamental Outlook: After a somewhat busy week, the Japanese yen takes a breather with focus shifting to the BoJ's core CPI measure. Last week's inflation report showed a somewhat mixed bag with the national core CPI rising 0.2% as expected while the Tokyo core CPI fell 0.1%, less than expected. The main driver for USDJPY will of course be this Wednesday's FOMC meeting. No changes to interest rates are expected from the central bank, while on Friday the monthly payrolls report will be coming out, all of which will signal increased volatility for the markets. Previous USDJPY Weekly Forex Forecast

USDJPY Weekly Forex Forecast - 1st to 5th May 2017