Technical Outlook: The USDJPY currency pair was seen rallying back to the resistance level area of 110.91 - 110.66 region. Despite the rebound, we expect to see price action being muted at this level. There is a high likelihood that price action could fall back to the support level at 109.97 in the near term. Further declines could push USDJPY down to the lower support at 109.14 region. To the upside, an unlikely breakout above 110.91 could trigger further gains toward 111.00. Fundamental Outlook: The week ahead will mark the start of the third quarter of the year. Data from Japan will see the release of the quarterly Tankan manufacturing and non-manufacturing surveys. Data from the second quarter showed that activity across both the sectors had fallen somewhat. The data for the quarter ahead is expected to show somewhat subdued levels especially with the heightened uncertainty surrounding the global trade wars.

USDJPY Weekly Forex Forecast - 2nd to 6th July 2018