Weekly Technical Outlook: USD/JPY;Market Forecasts for July 25th – July 29th

• Resistance level 107.597
• Pivot Level 106.536
• Support Level 103.492, 101.400, and 100.005

Technical Analysis

Daily bias in USD/JPY remains bearish with 107.597 resistances intact. A deeper decline is expected for the pair as long as resistances hold the area. The price action stays below resistances so far at the end of the week and such a decline is viewed as a correction. Thus, we’d expect the pair to remain bearish with a break of 106.536 indicating a near term bearish reversal taking place.

Outlook is to continue with the downside bias with price action signaling an engulfing bar reversal bearish movement. Rejection at resistance area closes below trend line and stochastic oscillator is currently at 75.0 levels. The pair closes below the rejection of trend line and there is a clear indication of trend reversal shifting the momentum.

Current developments suggest that a medium term downside is expected for a further low and a focus shall be at 103.492. A break here should make lower lows at 101.400/100.005 levels. Outlook remains bearish for the week.

Economic

• Consumer Confidence, New Home Sales
• Durable Goods Orders ex Transportation, Fed’s Monetary Policy Statement
• Fed Interest Rate Decision, Initial Jobless Claims, Goods Trade Balance
• Merchandise Trade Balance Total, Adjusted Merchandise Trade Balance, Import, Export
• Foreign investment in Japan stocks, BoJ Press Conference
• BoJ Monetary Policy Statement, BoJ Interest Rate Decision

Area of Interest

• Strong resistance at 107.597 area and closed below resistance levels.
• Bearish engulfing bar reversal strongly closing below the trend line.
• Price action closed below trend line and oscillator below 75.0 levels indicating shift in momentum.
• At Flip Area on Daily time frame resistance levels.

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