USDJPY Weekly Forex Forecast – 15th Aug to 19th Aug 2016

Technical Outlook: USDJPY fell back to the previously established support at 100.90, which marks a third time retest of this support. Price action is seen trading strongly within the falling price channel validating the downtrend. Minor resistance zone is identified near 102.75 – 102.25 which needs to be broken in order for USDJPY to aim higher. Note the descending triangle that is currently formed, which could signal further downside is the support at 100.90 gives way. To the downside, further declines can be expected towards 99.89 followed by 99.00.

Fundamental Outlook: On Monday, Japan’s second quarter GDP report will be the main event this week in an otherwise quiet week for the JPY. Forecasts show that Japan’s GDP might have increased at a slower pace of only 0.20% in the second quarter after growth expanded 0.50% in the first quarter. While a miss on the estimates or a weaker print is unlikely to do much for the yen, expect some weakness in the yen should the GDP report come out stronger than expected. Also keep an eye out on the US data this week where the FOMC meeting minutes and Fed member speeches.