Stop-and-go action was the theme for the USDJPY pair this week, while the EURUSD and GBPUSD pairs were in a bearish trend.

Factors driving the USDJPY included weak U.S. CPI results leading to dollar selling, but these were counteracted by a subsequent downward revision to one rate cut at the FOMC, reversing the trend toward dollar buying. As for the yen, there were no new actionable fundamentals at Friday's BOJ monetary policy meeting, and a rally in the pair after midday Tokyo time was offset by a decline in the afternoon.

As for the euro, not only has there been a rate cut, but far-right parties have gained several seats in the recent European Parliamentary elections, eating away at the majority for ruling factions in Germany and France. French President Emmanuel Macron dissolved parliament as a result for snap elections, indicating a suddenly unstable political landscape in that country. These developments led the EURUSD, and similarly its GBPUSD cousin, into a bearish pattern.

Let's review the market movements through the week.

On Monday, June 10, the Japanese government released the country's revised quarterly real gross domestic product for January to March, revealing 0.5% negative growth quarter on quarter matching expectations, and 1.8% negative growth when annualized versus 1.9% negative growth expected.

On Wednesday, June 12, the U.K. released its month-on-month GDP data for April, with 0.0% growth matching a 0.0% forecast.

On the same day, the U.S. Consumer Price Index (CPI) was also released, showing weak results as already mentioned and indicating receding inflation overall.

Data showed 0.0% month-on-month growth versus a 0.1% forecast, and 3.3% year-on-year growth versus a 3.4% forecast. In addition, the core index showed month-on-month growth of 0.2% versus a 0.3% forecast, and year-on-year growth of 3.4% versus a 3.5% forecast.

At the FOMC meeting held later on the same day (U.S. time), the policy rate was left unchanged as expected. However, the members' outlook for policy rates for the year (Fed dot plot) shows a median of one rate cut remaining before the end of the year. Since this was less than the two expected interest rate cuts, the dollar was bought back.

On Friday, June 14, shortly after noon Tokyo time, the Bank of Japan announced an unchanged policy rate, as widely expected, at the conclusion of its monetary policy meeting.

Economic Indicators and Statements to Watch this Week
(All times are in GMT)

June 18 (Tue)
09:00, Europe: May Harmonised Index of Consumer Prices (revised HICP, year-on-year data)
09:00, Europe: May Harmonised Index of Consumer Prices (revised HICP core index, year-on-year data)
12:30, U.S.: May retail sales (month-on-month data)
12:30, U.S.: May retail sales (month-on-month data, excluding automobiles)
23:50, Japan: Bank of Japan monetary policy meeting agenda

June 20 (Thu)
11:00, U.K.: Bank of England (BOE) policy interest rate announcement
11:00, U.K.: Bank of England Monetary Policy Committee (MPC) meeting
23:30, Japan: May Consumer Price Index, Japan (CPI, all items, year-on-year data)
23:30, Japan: May Consumer Price Index, Japan (CPI, all items less fresh food, year-on-year data)
23:30, Japan: May Consumer Price Index, Japan (CPI, all items less fresh food and energy, year-on-year data)

This week, the focus will be on Tuesday's retail sales figures. This is another U.S. economic indicator alongside the Consumer Price Index (CPI) that allows economists to determine the degree of inflation.

The following currency pair charts are analyzed using an overlay of the ±1 and ±2 standard deviation Bollinger Bands, with a period of 20 days.

The USDJPY tends to jitter nervously when any news comes out relating to either currency, and this jitter may be on display with the retail sales release on the 18th.

After the most recent FOMC meeting, the CME's FedWatch tool shows the probability of a FOMC meeting with a rate cut exceeding that of an unchanged rate on September 18.

Next is an analysis of the USDJPY daily chart.

Though the pair has broken through the upper edge of the triangle that we had been watching, it has found limited upside, leaving only long upper whiskers. This may end up being a false breakout, with the price falling back below the upper edge of the triangle.

We continue with an analysis of the USDJPY weekly chart.

The pair holds its bandwalk between the +1 and +2 standard deviation Bollinger Bands. For the time being, a key watershed will be whether or not it breaks below the +1 standard deviation band.

Interest rate cuts and political instability have started to put significant downward pressure on the euro vis-a-vis the dollar. A similar trend is also visible for the EURJPY.

Next is an analysis of the EURUSD daily chart.

We can clearly see a greater number of bearish candles mixing into the daily trades, with a sloping decline beginning to follow the -2 standard deviation Bollinger Band.

We continue with an analysis of the EURUSD weekly chart.

Though the pair temporarily broke below the lower edge of the large triangle formation in the most recent week of trading, the pair closed only leaving a lower whisker below the triangle.

The pound's policy rate will be announced on June 20, and is expected to remain unchanged. As Europe as a whole is shifting to a risk-off stance, it is also necessary to watch the pound for sell-offs.

Now, we analyze the daily GBPUSD chart.

During Friday's decline, the pair plummeted even below the -2 standard deviation Bollinger Band in intraday trading. Keep a close eye on a possible descending bandwalk.

We continue with an analysis of the GBPUSD weekly chart.

The rally early in the most recent week of trading briefly led the pair above the upper edge of its large triangle formation, but was driven back into the triangle with an upper whisker.