Dollar/yen managed to break to new lows, as the interventions proved insufficient. Inflation figures are the highlights of this week. Here’s an outlook for the Japanese events and an updated technical analysis for USD/JPY. Last week, Japan’s economy continued to improve contracting less than predicted in the second quarter. Gross domestic product shrank by 0.3% amid recovery in manufacturing and exports. Analysts expected GDP to contract by 0.6%. Is expansion right around the corner? USD/JPY daily chart with support and resistance lines on it. Click to enlarge: Let’s Start: CSPI : Tuesday, 23:50. Japan’s corporate service price index dropped 0.7% in June on a yearly base from 0.9% decline in May. The relatively small decrease in prices was due to rising prices in transportation. National Core CPI : Thursday, 23:30.Japan’s core consumer prices increased by 0.4% in June from a year earlier, the third consecutive rise. Core consumer prices in Tokyo, rose 0.4% in July from a year earlier, after a 0.1 percent rise in June, above market forecast for a 0.2% rise. Jackson Hole Symposium: Thu-Sat. Jackson Hole Symposium in Wyoming is a big economic event attended by central bankers, finance ministers, academics, and financial market participants from around the world. Federal Reserve chairman Ben Bernanke will present his views on the economy and perhaps suggest new steps. QE3 is anticipated by many, but the chances are not that high. *All times are GMT USD/JPY Technical Analysis Dollar/yen traded in a very narrow range throughout most of the week, capped by 77 (a new line that didn’t appear last week). On the down side, 0.7625 provided support, but was temporarily broken for a new record low at 75.95. Technical lines, from top to bottom: 82.87 was the trough before the BOJ intervention in September 2010 and also played an important role recently as the peak of a recovery attempt. 82.20 capped the pair in a very stubborn way many weeks ago and remains a strong line now. 81,50 was a peak before the recent leg down and has a significant role. 81.06 was a weak line of support in May and slowed down a second move upwards. 80.50 held the pair several times recently and remains a strong and immediate line of resistance on another attempt to settle above 80. The round number of 80 was broken, but this was short lived, and its strength remains. 79.75 is the historic low of 1995 and played a critical role when the pair collapsed in March. It is now a minor line, after being shattered. Below, 79.30 proved to be a persistent cap for dollar/yen, holding down recovery attempts. also just now. An attempt to break higher resulted in a drop lower. 78.50 provided some support before the next leg down, and is now weak resistance. Further down, 78.20 worked as temporary resistance, and provides some support. 77.50 was the bottom border of the range, and is set to work as resistance if the pair breaks higher. It is followed by 77, which was a significant cap for the range trading seen now.. Further below we have the swing record low of 76.25, which was seen on the huge collapse in March and was a bottom just now. The new low of 75.95 is the final frontier in charted territory. Below, the round number of 75 is the next potential cushion. I remain bullish on USD/JPY. Japan is still in recession, for a third quarter in a row. While the efforts of the BOJ are not effective, the lack of QE3 in the US can push the pair higher. Further reading: For a broad view of all the week’s major events worldwide, read the USD outlook. For EUR/USD, check out the Euro to Dollar forecast. For GBP/USD (cable), look into the British Pound forecast. For the Australian dollar (Aussie), check out the AUD to USD forecast. For the New Zealanddollar (kiwi), read the NZD forecast. For USD/CAD (loonie), check out the Canadian dollar For the Swiss Franc, see the USD/CHF forecast. Anat Dror Anat Dror Anat Dror Senior Writer I conceptualize, design and create multi-lingual websites. Apart from the technical work, my projects usually consist of writing content for these sites in English, French and Hebrew. In the past, I have built, managed and marketed an e-learning center for language studies, including moderating a live community of students. I've also worked as a community organizer Anat's Google Profile View All Post By Anat Dror MajorsUSD JPY Forecast share Read Next GBP/USD Outlook – August 22-26 Yohay Elam 12 years Dollar/yen managed to break to new lows, as the interventions proved insufficient. Inflation figures are the highlights of this week. Here's an outlook for the Japanese events and an updated technical analysis for USD/JPY. Last week, Japan's economy continued to improve contracting less than predicted in the second quarter. Gross domestic product shrank by 0.3% amid recovery in manufacturing and exports. Analysts expected GDP to contract by 0.6%. Is expansion right around the corner? USD/JPY daily chart with support and resistance lines on it. Click to enlarge: Let's Start: CSPI : Tuesday, 23:50. 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