Technical Outlook: USDJPY attempted to rally above 111.695. The currency pair managed to briefly break above this level but price action was quickly prompted by a strong bearish candle. By Friday's close, USDJPY closed just below the support at 110.80. The next lower support is found at 109.70. This could be the next downside target for USDJPY. However, the Stochastics here is showing a higher lower against the lower low in price. This divergence could signal a potential correction in the making. But watch for a confirmed close above 111.69 in order to expect further upside in prices. Resistance is seen at 113.00. Fundamental Outlook: Data from Japan this week is mostly tuned into the second-tier data which is unlikely to move the markets much. Focus will of course turn to the economic data from the U.S. as a result. With the nonfarm payrolls, ISM manufacturing and non-manufacturing PMI's lined up, the U.S. economic data will be the major drivers in the USDJPY this week. Trader sentiment will also play a role as a better than expected performance could signify that the Fed could still proceed with another rate hike this year. This will be quite hawkish as the Fed had made it clear on its intentions to begin unwinding its balance sheet. Previous USDJPY Weekly Forex Forecast

USDJPY Weekly Forex Forecast - 31st July to 4th Aug 2017