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Bad Data, Possibility of Canceling Olympics Pushing USD/JPY Higher. Can it Continue into Fiscal Year-End?

The news was not good for Japan this week.  First, Japan extended its state of emergency due to the coronavirus to 5 more Prefectures.  In addition, the Bank of Japan downgraded their forecast for near-term growth.  Inflation and PMI data released today were both horrific.  There is even talk that the Tokyo Olympics this summer will be outright canceled, not just postponed.  The negative news is weakening the Yen vs the US Dollar.  Can this move continue?

USD/JPY

On a weekly timeframe, USD/JPY put in a high of 125.68 in June of 2015 and has been trending lower since.  The downward sloping trendline off that high comes in now at near 109.25 and moves lower each week.

Source: Tradingview, FOREX.com

On a daily timeframe,  the chart shows the extremely volatility that took place in USD/JPY between mid-February and mid-March during the early part of the pandemic, in which price moved from 112.22 down to 101.18 and back to 111.71!  The pair has continued lower in an orderly fashion, and as of July 2020, is in the process of forming a descending wedge.  The