The USD/JPY pair traded in a range bound market during last weeks trading session staying in a consolidation pattern. Initial bias stays neutral this week first. On the downside, a break and close of price below 118.22 will bring deeper fall to 116.86 and below. But further decline attempt should be contained by 38.2% retracement of 105.19 to 121.84 at 115.47. On the upside, break and close of 121.82 is needed to confirm larger up trend resumption.
In the coming week, Tuesday’s testimony by Fed Chair Janet Yellen to the Senate Banking Committee will be closely watched for any indication on when U.S. interest rates may start to rise.