Technical Outlook: The USDJPY remains week with the stronger Japanese yen outperforming the U.S. dollar. Price action continues to briefly retest the falling trend line only to resume the declines once again. By Friday's close, the USDJPY was seen trading near the 105.78 - 105.42 level where support has been formed. This could potentially mark a reversal in the near term. However, USDJPY will need to breakout from the trend line in order to establish the upside trend. Watch for a dip after the breakout for USDJPY to signal a move towards 108.43. Fundamental Outlook: Economic data from Japan for the week ahead is quiet. However, focus shifts to Friday's Bank of Japan monetary policy meeting. The BoJ left monetary policy unchanged at the previous meeting as it pushed back inflation expectations suggesting that there could be no major tweaks to the BoJ's policies in the near term. Investors will nonetheless focus on the forward guidance for any clues on whether the central bank will ease back on its QE purchases. Consumer prices in Japan have been rising, albeit at a slower pace. Officials at the BoJ however expressed concerns previously about the downside risks to prolonged QE purchases. Previous USDJPY Weekly Forex Forecast

USDJPY Weekly Forex Forecast - 5th to 9th Mar 2018