Technical Outlook: USDJPY is carving out the descending triangle pattern with last week's price action on the daily chart, breaking out below 111.650 support level that was briefly held previously. Although price action in USDJPY is attempting to post a correction, the bias remains to the downside, unless price closes back above 111.650. Watch the Stochastics here on the daily time frame which is also showing a reversal from the oversold levels. A move back above 111.650 could mean a rally back towards 114 - 115 region at the very least. USDJPY is overall likely to remain range bound with a breakout above 115.000 signaling further upside in prices. Fundamental Outlook: A busy economic calendar from Japan, focus turns to the retail sales numbers which is expected to post a 0.7% increase compared from the 1.0% gain seen previously. Inflation figures will also be in focus this week with the national core CPI expected to rise 0.2%, while the Tokyo core CPI is expected to post a 0.2% decline, slightly better compared to the previous month. The housing starts figures are also expected this week which is expected to slide 1.2%, after posting a 12.8% increase previously. Previous USDJPY Weekly Forex Forecast

USDJPY Weekly Forex Forecast - 27th to 31st Mar 2017