USDJPY Analysis 06.02.2019

The US dollar fell during the Asian session against the Japanese yen amid a lack of economic data by the Japanese economy, the third largest economy in the world and following the speech by US President Donald Trump, the State of the Union address to Congress in Washington and on the eve of developments and economic data expected Wednesday by the US economy largest economy In the world.

At 06:07 GMT, the greenback was down 0.18% at 109.76, compared to the opening levels at 109.96 after recording a low of 109.63 and a high of 110.05.

US President Trump's speech on the state of Congress was followed by concern over a new partial closure of the federal government that shines in the shadow of Trump's determination to set up a border wall with Mexico and Democrats refuse to finance it. Otherwise, markets are now looking to read Initial labor cost index which reflects the acceleration of growth to 1.7% compared to 0.9% in the third quarter last.

The US economy is also closely approaching the preliminary reading of US non-farm productivity, which may show growth slowing to 1.7% versus 2.3% in the third quarter, in conjunction with the November trade balance reading, To $ 54.0 billion from $ 55.5 billion last October.

Technical Analysis

The USD / JPY pair has been trading sideways in recent sessions and is starting bearish today to test SMA 50, but since the price is above 109.12, the bullish scenario will remain intact over the intraday range and the price needs to breach 110.00 to confirm the upside wave extension towards 111.56.

Keep in mind that breaking 109.12 will stop the positive scenario and put the price under negative pressure with targets starting at 108.09.

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

The general trend for today is bullish