Technical Outlook: The USDJPY continued to post declines with price breaking below the support level at 105.78 – 105.42 level. In the near term, we expect to see further declines on the horizon. However, watch for a potential pullback to the breached support level which could bring further selling pressure in the currency pair. To the downside, the next main target comes in at the round number support of 104.00 which could be realized if USDJPY continues to trade weak and the resistance at 105.42 puts a lid on any gains in the near term.
Fundamental Outlook: Data from Japan this week is quiet with only the flash manufacturing PMI due on Thursday. Later on the same day, the national core CPI data will be released. The market data this week is unlikely to move the Japanese yen much. However, the ongoing uncertainty surrounding Trump’s policies on monetary policy is likely to influence the market sentiment which could see some volatility in the yen.
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USDJPY Weekly Forex Forecast – 26th to 30th Mar 2018
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