USD/JPY posted modest gains last week, as the pair closed at 120.55. This week’s highlights are Retail Sales and the Tankan indices. Here is an outlook on the major events moving the yen and an updated technical analysis for USD/JPY.

The US dollar got some help from the Fed last week, as Yellen surprised with a relatively hawkish speech, and the week ended on a positive note as Final GDP for Q2 posted a strong gain. In Japan, inflation indicators posted declines, underscoring weak economic activity.

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