The USD/JPY traded lower during last week’s trading session after price formed a resistance at 50.0 Fibonacci retracement regions, drawing price from 103.830 high to 101.316 supports. Weekly bias remains on the downside as a fresh divergence of 21 and 55 EMA is seen on the 4hours time-frame. MACD, RSI and Stochastic oscillators are also signaling a fresh bearish resumption is about to commence.
Price is expected to decline further to 101.316/100.734 supports and a break of such supports would confirm a bearish reversal on the Daily charts. However, a break of 102.708 resistance would resume the pairs bullish trend and more demand to 104.000 psychological region is expected.
Key Economic indicators to watch out for in the coming week are ISM Manufacturing PMI, Advance GDP q/q, Non-Farm Employment Change and Unemployment Rate.