Technical Outlook: USDJPY continued its losing streak as price fell to a 4-week low, closing on Friday at 111.11. Further declines could be seen coming with the major support at 110.80 in place. A near term retracement could see USDJPY test the resistance level at 111.57 - 111.69 region. The bullish bias gains momentum only on a break out above this level. Still, USDJPY will need to struggle to breakout from the next main resistance zone at 112.98 - 113.22. Most likely we could see USDJPY test this resistance level (112.98 - 113.22) into Wednesday's FOMC meeting. To the downside, if 110.80 support fails to hold the declines, then USDJPY could be seen pushing lower towards the 109.00 handle that was previously tested in early June this years. Fundamental Outlook: The economic calendar from Japan is very quiet with not much data to go by. Economic data includes the flash manufacturing PMI figures for July. The BoJ will also be releasing the monetary policy meeting minutes. Last week's BoJ decision saw the central bank push back its inflation expectations while upgrading GDP projections. More clarity on this could be seen via the meeting minutes. Later in the week, the inflation figures and preliminary industrial production numbers will also be coming out. Previous USDJPY Weekly Forex Forecast

USDJPY Weekly Forex Forecast - 24th to 28th July 2017