Japanese Yen Analysis 28.12.2018

The US dollar fell during the American session to see its rebound for the ninth session in one of the ten sessions of the highest since December 3 against the Japanese yen following developments and economic data that followed on the Japanese economy and on the eve of developments and economic data expected Friday by the US economy largest World economy.

At 05:54 GMT, the US dollar was down 0.33% at 110.64 compared with the opening levels at 111.01 after the pair reached a low of 110.52 and the highest at 111.03.

We followed the Japanese economy by revealing the Bank of Japan's summary report in conjunction with the seasonally adjusted preliminary release of retail sales, which showed a 1.0% drop from a 1.3% rise last October, worse than the 0.4% The annualized reading of the same index showed that growth slowed to 1.4% from 3.6% in October, also worse than expectations of slowing growth to 2.1%.

This came in line with the release of the Tokyo Consumer Price Index (CPI), which showed growth slowed to 0.3% from 0.8% in November, below expectations of 0.5%. The core annual reading of the index itself, excluding fresh food, To 0.9% in line with expectations versus 1.0%, and the core annual reading excluding fresh food and energy showed stability at 0.6%.

We also followed the third-largest economy in the world, reading Unemployment Rate, which rose to 2.5% from October and expectations of 2.4%. The preliminary reading of industrial production fell 1.1% from 2.9% in October, In contrast to expectations of a 1.5% decline. The same year's annual reading showed that growth slowed to 1.4% from 4.2%, well above expectations of 0.6%.

On the other hand, investors are currently waiting for the US economy to release the Chicago Purchasing Managers Index, which may reflect a contraction of the widening to 61.4 against 66.4 in November before we see the housing market data released with the release of new home sales Which could reflect a 0.9% rise versus a 2.6% fall in October.

Technical Analysis

The USD / JPY pair rebounded yesterday to near 110.38 now and is under continuous negative pressure coming from the 50 MA to support the break of the mentioned level and open the way towards our awaited targets at 109.75 and 109.35.

Therefore, the bearish trend will remain effective during the coming period provided stability below 111.97.

The trading range for today is among the key support at 109.75 and resistance at 111.00

The general trend for today is bearish