Technical Outlook: USDJPY posted new losses last week as price broke down below the Brexit lows made in late June. However, USDJPY continues to evolve into a descending wedge pattern which signals a potential upside risk. Near term resistance is seen at 100.90 while price is currently being supported at 99.85. Watch for a potential breakout above 100.90, for USDJPY to rally towards the major resistance level at 102.75 - 102.25. In the event USDJPY breaks down below 99.85, the declines could see a continued fall towards 99.00 and then to 98.85. Fundamental Outlook: The yen continues to remain strong but is under significant risk from any policy reaction or comments from the BoJ and Japanese officials. This week, BoJ Governor Kuroda's speech is up on Tuesday and later in the week, we will get to see how Japan's consumer prices developed in July. With a weaker US dollar, the USDJPY is unlikely to see any major gains in the near term.

USDJPY Weekly Forex Forecast - 22nd Aug to 26th Aug 2016 - BEARISH