USDJPY Analysis 22.01.2019

The dollar fell during the Asian session to see its rebound to the third session of the highest since the end of December last against the Japanese yen following developments and economic data that followed on the Japanese economy and on the eve of developments and data expected Tuesday by the US economy, the largest economy in the world and in the shadow of continuing Partial closure of the federal government in the United States.

At 06:00 GMT, the pair dropped 0.24% to 109.41 compared to the opening levels at 109.67 after recording a low of 109.39 and a high of 109.70.

We followed the Japanese economy to release inflation data with the core CPI reading, which showed a slowing of growth to 0.4% from last October's reading and expectations of 0.5%, and comes hours before the BOJ meeting on Wednesday In which the central bank's monetary policy makers may offer more flexibility in monetary policy.

On the other hand, investors are looking for the US economy to release data on the housing market with the release of the existing home sales index, which may reflect a decline of 1.5% to 5.24 million one against 1.9% rise at 5.32 million in November last, The partial closure of the federal government in its fifth consecutive week to reflect the longest partial closure of the federal government in American history.

Technical Analysis

The USD / JPY pair is starting a slight bearish trend on its way to test pivotal support at 109.16. As noted in our recent reports, stability above this level keeps the bullish scenario intact for the coming period, targeting the 110.24 test as a next stop.

Keep in mind that a break of 109.16 will press the price to drop again and initially visit the 108.09 level.

The trading range for today is expected among the key support at 108.80 and the resistance at 110.24

The general trend for today is bullish