Technical Outlook: USDJPY's attempt to break out above 114.00 resistance failed mid-way as price quickly posted a reversal. We expect further declines to push USDJPY to test 112.50 support and could potentially see USDJPY consolidate within the support zone of 112.50 - 112.00 region. However, the falling trend line is likely to offer dynamic support which could keeep USDJPY range bound within 1114.00 and 112.50. In the near term, look for a bounce off 112.50 level for a retest back to 113.50. Expect to see further gains or declines only on a breakout above 114.00 resistance or 112.50 support.. Fundamental Outlook: A slow week from Japan, focus turns to the flash manufacturing PMI figures for February. Manufacturing PMI data being released by Markit this week is expected to show a moderation in the sector with the index forecast to fall to 52.1 from 52.7. Later in the week, the Japan all-industry activity is expected to show a 0.2% decline on a month over month basis. However, the major part of the week will see focus on how investor sentiment will shape out especially with the U.S. Federal Reserve releasing the FOMC meeting minutes during the week. With rising interest rates expectations alongside a mixed investor sentiment, the Japanese yen could see some volatility. Previous USDJPY Weekly Forex Forecast

USDJPY Weekly Forex Forecast - 20th to 24th Feb 2017 - Bullish