USDJPY Analysis 05.02.2019

The US dollar fluctuated in a tight range slipping towards the Asian session to see its rebound to its second-highest session since the end of last December against the Japanese Yen amid a lack of economic data by the Japanese economy and on the eve of developments and economic data expected Tuesday by the US economy The world's largest economy.

At 05:58 am GMT, the dollar fell against the Japanese yen by 0.06% to 109.82 compared to the opening levels at 109.89 after the pair reached a low of 109.82, while the highest at 110.04.

On the other hand, investors are looking for the US economy to reveal the final reading of the index of the Institute of Service Supply by Markit for the United States, which may reflect the stability of the breadth at 54.2 compared to 54.4 in December, before the disclosure of the index of the Institute of Service Suppliers, which may appear The gap narrowed to 57.2 from 57.6 in December, and we would like to point out that service delivery is important because the service sector in America represents more than two-thirds of GDP.

Federal Reserve monetary policy makers kept interest rates between 2.25% and 2.50% last week while continuing to cut bond purchases by $ 50 billion per month. Federal Commissioner Jerome Powell said that the committee would be patient and monitor economic data as the downside risks to the economy worsened due to the weakening of global growth and volatility of the financial week. Whether or not this approach will continue depends on economic data.

Technical Analysis

The pair made a positive trading yesterday to reach the awaited target of 110.24, which represents 61.8% Fibonacci retracement of the decline from 113.70 to 104.62, which means that breaching it will push the price to visit the 111.56 level directly.

SMA 50 supports the price from the bottom, and Stochastic is beginning to shed its negative momentum, which supports the chances of a continuation of the bullish trend during the coming sessions, taking into account that the break of 109.16 will stop the current rise and press the price to decline again.

The trading range for today is expected among the support at 109.16 and the resistance at 110.70

Support and resistance:

Support: 109.24-108.51

Resistance: 109.90-110.67

The general trend for today is bullish