The US Retail Sales and CPI figures came out on Friday and didn't meet expectations. The Citi Economic Surprise which measures the actual economic performance in relation to forecasts was at its lowest for the year. The weaker US economic data triggered a pull back in USDJPY pair. 

This week is a quiet week for the USD with only two high impact news. 

Building Permits will be released on Tuesday and is expected to be flat this month.

Crude Oil Inventories will be released on Wednesday and affects inflation and impacts growth as well. Volatility is expected during the news release.

Unemployed Claims figures will be released on Thursday. The figures are expected to increase from a previous of 236k to 240k and more likely to weaken the greenbag

Japan's Prelim GDP q/q is expected to increase from a previous of 0.3% to 0.4% on Thursday. This indicator measures the overall economic activity and overall gauge of the Japanese economic health.

Geopolitics, North Korea fired a ballistic missile over the weekend from the west coast region and landed in the Sea of Japan.

Japanese Futures market is bearish in both the long-term and short term but the bearish momentum has been lost indicating a short-term rally. The bearishness in the Japanese Futures markets favours a stronger USD in the long-term. Any correction of the Japanese Futures would weaken the USDJPY and should provide opportunities to buy USDJPY.

The weekly chart opened higher than the previous week's close partly due to the French election results. The pair fell towards 112.3 and rallied significantly to a high of 114.3 towards the 61.8% Fibonacci level. The price fell upon weaker US data on Friday to close below the 50% Fibonacci level to at 113.3 handle. This movement created a spinning top candlestick pattern suggesting the markets were neutral. This indicates indecision between the bulls and the bears with a small Bullish movement lacking conviction to take the move higher.

On the daily chart, the first three days were bullish with the first day of the session falling into the Kumo Cloud and rallied towards 114.35 level and began to correct. The last candle of the week closed at 113.32 and shows that bears were in control and committed during the trading session. There is still some bearish move left towards the Kumo Cloud at 112.80 handle. The right side of the Cloud shows that Senkou Sapn A is above Senkou Span B favouring a long term bullish move. 

The H4 chart is bullish with the price well above the Kumo Cloud, however, the price has broken the Kijun-Sen to the bearish side and confirms some bearish move left. Support is expected on the Kumo Cloud at the 112.80 level.

I am in favour of a bullish move on the USDJPY mainly because of the long term bullish focus of the Ichimoku Cloud. The 4 Hour, the daily and the weekly chart are all bullish in the long term. Adding to this is a weaker Japanese Futures which I expect to continue to fall further in the long-term. However, patience is required to open long positions on this pair as some choppiness should follow due to the indecisiveness of the previous week. A retreat towards the 112 level will provide opportunities to enter a bullish trade. The 112 handle is a strong support which is also last week's open. A reaction to North Korea's missile test over the weekend is more likely to weigh on investors on Monday trading session and may push the pair towards the 112 handle.