Technical Outlook: USDJPY posted a strong rally last week with little to no pull back to the rally. This indicates a strong correction is likely after USDJPY failed to breakout above the next resistance at 104.290 – 104.10 level. The Stochastics is also showing a bearish divergence currently pointing to USDJPY falling back to 102.75 – 102.25 level which could now act as support. A break down below this level will see USDJPY retest 100.90 support level that was pending retest last week.
Fundamental Outlook: It is another quiet week for the yen, but not before BoJ’s Kuroda speaks on Monday. Any hints at the upcoming BoJ meeting later in September could keep the yen pressured to the downside. Later in the week, Japan’s second quarter GDP data is up for release and is expected to show no change to the GDP print from the initial estimates. Traders will therefore turn focus to the US data this week which includes the ISM’s non-manufacturing PMI report.
USDJPY Weekly Forex Forecast – 5th Sept to 9th Sept 2016 – BULLISH
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