JPYUSD analysis

The US dollar fluctuated in a narrow range that tends to rise during the Asian session, to witness its highest since the fourth of January against the Japanese yen, following the developments and economic data that they followed on the Japanese economy and on the cusp of economic developments and data expected today, Thursday, by the US economy, the largest economy in the world. .

At 06:50 AM GMT, the US dollar against the Japanese yen rose by 0.13% to 104.25 levels compared to the opening levels at 104.11, after the pair achieved its highest level in two weeks at 104.37, while it achieved its lowest level in the session at 104.07.

This is a delegation that was followed by the Japanese economy, the second-largest in Asia and the third-largest in the world. The release of the seasonally adjusted reading of the retail sales index, which showed a decline in the decline to 0.8% compared to 2.0% last November, while the annual reading for the same index showed a decrease of 0.3% against A 0.6% rise in November, beating expectations for a 0.4% decline.

On the other hand, investors are currently awaiting the American economy to unveil the preliminary reading of the GDP of the United States for the fourth quarter, which may show that the largest economy in the world expanded 4.2% compared to a growth of 33.4% in the last third quarter, as it may reflect the initial reading of the gross domestic product. Measured by prices for the last quarter, the growth slowed to 2.2%, compared to 3.5% in the third quarter.

This comes in conjunction with the release of the aid requests index reading for the past week on January 23, which may reflect a decrease of 20 thousand applications to 880 thousand applications compared to 900 thousand applications in the previous reading, and with the reading of the merchandise trade balance index, the deficit decreased to its value. $ 83.4 billion compared to $ 84.8 billion in November.

This also comes in conjunction with the release of the preliminary reading of the wholesale stocks index, which may indicate an increase of 0.5% compared to the stability at zero levels in November, leading to the release of the leading indicators reading, which may reflect a slowdown in growth to 0.3% compared to 0.6% in November. In conjunction with the new home sales index, which showed an increase of 1.9% to 860,000 homes, compared to a decline of 11.0% at 841,000 homes in November.

This comes hours after the end of the January 26-27 FOMC meeting, in which monetary policymakers at the Federal Reserve kept the short-term reference interest rates at their lowest ever point, between zero and 0.25% for the seventh meeting. In a row, which came in line with expectations, with the proceeding of the bond purchase program, which is estimated at $ 120 billion per month.

Yesterday we also followed up on the actions of the press conference held by Federal Reserve Governor Jerome Powell after the meeting, in which he addressed the fact that the recovery of the economy and the pace of employment slowed in recent months due to the sharp increase in the number of Coronavirus infections in his country, while referring to the fact that there are expectations of an improvement in economic activity at a later time. This year coincided with the distribution of more doses of coronavirus vaccines in the United States.

Technical analysis

The dollar against the yen rose strongly to breach the 103.90 level and settle above it, which stops the negative scenario suggested in our recent reports and leads the price to turn to the upside, on its way to head towards 105.20 as a next positive target.

Thus, the bullish trend will be expected during the upcoming sessions unless breaching 103.65 level and holding below it.

The expected trading range for today is between 103.65 support and 105.00 resistance

The expected general trend for today: Bullish