Dollar/yen was in red territory for a fourth straight week, as the pair declined 1.0% last week. The pair is currently at its lowest level since the first week of February. Will the yen rally continue? USD/JPY fundamental movers The BoJ minutes from the April meeting indicated that the policymakers intend to stick to their ultra-accommodative policy. At the meeting, members stated that the bank’s forward guidance for policy rates, saying that they would keep short and long-term interest rates at very low levels “at least though around spring 2020”. Members also acknowledged that it would take time for inflation to reach the BoJ’s target of around 2 percent. The safe-haven yen received a boost last week as trade tensions escalated between the U.S. and China. President Donald Trump made good on his tariff threat, as the U.S. raised tariffs on $200 billion worth of Chinese goods on Friday, from 10% to 25%. Trump announced the move on the previous Sunday, which sent shock waves across equity markets during the week. In the U.S, the focus was on inflation. The producer price index slowed to 0.2% in April, down from 0.6% a month earlier. The core release also lost ground, dropping from 0.3% to 0.1%. This was followed by consumer inflation reports. CPI dropped from 0.4% to 0.3%, shy of the estimate of 0.4%. The core release remained stuck at 0.1%, short of the estimate of 0.2%. See all the main events in the Forex Weekly Outlook Key news updates for USD/JPY Updates: USD/JPY Technical Analysis With USD/JPY posting sharp losses last week, we start at lower levels: 114.25 was the high point in November. Close by, 113.80 was a resistance line in November. 113.15 was a swing high back in July. 112.73 was an important resistance line in October. 112.25 has held in resistance since December. 111.69 was the high point of the current slide which started in early May. 111.15 follows. Early in the week, the pair broke through support at 110.40 (mentioned last week). 109.73 was tested late in the week. It starts the week as a weak support line. Close by, 109.35 was a cushion in mid-July. 108.70 was a cushion early in the summer and 108.10 was a swing low in late May. 107.50 capped the pair in early April. 106.61 is the final support level for now. USD/JPY Daily Chart USD/JPY Sentiment I am neutral on USD/JPY The U.S. economy continues to outperform its Japanese counterpart, but investors favored the yen last week. With the Federal Reserve keeping all options on the table, a rate hike remains a possibility. However, if trade tensions continue between the U.S, and China, the safe-haven yen could remain attractive to investors. Further reading: EUR/USD forecast – for everything related to the euro. GBP/USD forecast – Pound/dollar projections AUD/USD forecast – analysis for the Aussie dollar. USD/CAD forecast – Canadian dollar predictions Safe trading! Kenny Fisher Kenny Fisher Kenny Fisher - Senior Writer A native of Toronto, Canada, Kenneth worked for seven years in the marketing and trading departments at Bendix, a foreign exchange company in Toronto. Kenneth is also a lawyer, and has extensive experience as an editor and writer. Kenny's Google Profile View All Post By Kenny Fisher MajorsUSD JPY ForecastWeekly Forex Forecasts share Read Next Forex Weekly Outlook May 13-17 – Trade and the consumer remain in the limelight Yohay Elam 4 years Dollar/yen was in red territory for a fourth straight week, as the pair declined 1.0% last week. The pair is currently at its lowest level since the first week of February. Will the yen rally continue? USD/JPY fundamental movers The BoJ minutes from the April meeting indicated that the policymakers intend to stick to their ultra-accommodative policy. At the meeting, members stated that the bank's forward guidance for policy rates, saying that they would keep short and long-term interest rates at very low levels "at least though around spring 2020". Members also acknowledged that it would take time for inflation… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.