USDJPY Analysis 04.02.2019

The US dollar rose during the Asian session to see its rebound to its third session since January 16 against the Japanese yen following developments and economic data that followed the Japanese economy, the third largest economy in the world and on the brink of developments and economic data expected on Monday by the US economy The world's largest economy.

At 0550 GMT, the USDJPY rose 0.21% to 109.73 from the opening levels of 109.50 after hitting the highest level since January 25 at 109.79, while the lowest level during the session At 109.43.

We followed the Japanese economy to reveal the annual reading of the monetary base index by the Bank of Japan, which showed a slowdown in growth to 4.7% compared to 4.8% in December, exceeding expectations that slowed growth to 4.6% The Bank of Japan has been using this indicator as its main operational target for the monetary base scheme since April 2013.

On the other hand, investors are currently looking for the US economy to reveal the factory demand index, which may show a rise of 0.3% compared to a decline of 2.1% in October, and this comes hours after the data showed the labor market last month, which showed high unemployment for the month The second consecutive month to 4.0% compared to the previous forecast for December at 3.9%.

In the same context, the average hourly earnings reading showed a slowdown in growth to 0.1% from 0.4% in December, worse than expectations of 0.3%, while the Nonfarm Employment Change Index showed that job creation accelerated to 304K Adding an added 222,000 jobs in December, beyond expectations for 165,000 jobs.

Federal Reserve monetary policy makers kept the federal funds rate at 2.25% to 2.50% at the Federal Open Market Committee meeting held on 29-30 of last month as they continued to cut back on bond purchases by $ 50 billion a month. Federal Reserve Governor Jerome Powell said at the time that the committee would be patient about raising interest rates.

Technical Analysis

The USD / JPY pair has traded positively in recent sessions to breach the 109.16 level and is stabilizing above it, resuming the bullish correction scenario again, targeting 110.24 as a next stop.

Therefore, the bullish trend will be likely in the coming sessions unless the level of 109.16 is broken and stability below it, noting that the breach of the target level will extend the upside wave to 111.56.

The trading range for today is expected among the support at 109.00 and the resistance at 110.24

Support and resistance:

Support: 109.24-108.51

Resistance: 109.90-110.67

The general trend for today is bullish