Technical Outlook: The USDJPY posted strong gains last week as price managed to breakout from the resistance level ot 110.91 - 110.66. Following this breakout we expect a near term decline back to this level where support could be established. A pullback to 110.91 - 110.66 level will suggest further upside which could see USDJPY rising to as much as 113.00 level. We also notice the bearish divergence that is formed on the Stochastics oscillator against the current lower high in price. Therefore, this potentially validates the view to the downside as USDJPY tests the support level. Alternately, in the event that USDJPY breaks out above the previous high of 112.50, we can expect further gains to continue for a while, but eventually a pull back to 110.91 -110.66 is but expected.. Fundamental Outlook: A busy week for Japan with lot of economic releases scheduled. On Monday the BoJ will be releasing its monetary policy meeting minutes. This comes from last week's BoJ meeting where no changes were made to QE or interest rates. Mid week, the inflation data is expected to come out and could shed light on consumer prices during August. Making up the tail end of the economic data, we have the retail sales and housing starts figures coming up. Overall, the data over the week is unlikely to change the sentiment in the yen. Previous USDJPY Weekly Forex Forecast

USDJPY Weekly Forex Forecast - 25th to 29th Sept 2017