Technical Outlook: The USDJPY currency pair posted a strong rebound after initially posting losses during the week. However, Friday's rally toward highs of 109.71 saw the currency pair giving back some of the gains. In the near term, we expect the USDJPY currency pair to slip back to establish support at 109.14 level. This is also seen with the Stochastics oscillator printing a hidden bearish divergence. There is a possibility that the USDJPY currency pair could fail to establish support at 109.14 which could signal further declines as a pending test of support near 107.77 - 107.63 awaits. Fundamental Outlook: Economic data from Japan this week is light. The week starts off with the average cash earnings and household spending. Both these reports could signal spending and inflation patterns. With Japan's unemployment rate at lows, wage growth has lagged. However, officials remain hopeful that wages will eventually start to rise, pushing inflation higher. Later on the week, on Friday, the final GDP report for the first quarter will be coming out. Economists do not expect to see any changes after previous reports showed that Japan's economy contracted in the first three months of the year.

USDJPY Weekly Forex Forecast - 4th to 8th June 2018