USDJPY Analysis 12.02.2019

The US dollar rose during the Asian session to its highest since December 28 against the Japanese yen following developments and economic data followed Tuesday by the Japanese economy, the third largest economy in the world and amid the lack of economic data earlier this week by the US economy largest economy In the world.

At 5:38 am GMT, the greenback was up 0.17% at 110.57 from the opening at 110.57, after reaching a seven-week high of 110.65, while the session's lowest at 110.35.

We have followed the Japanese economy. The Bank of Japan has released the annual reading of the Bank of Japan's M2 lending index, which showed growth of 2.4% in January, in line with expectations, before seeing the Tertiary Industrial Index drop to 0.3% 0.4% in November, contrary to expectations that the decline to 0.1%.

On the other hand, investors are looking forward to what Federal Reserve Governor Jerome Powell will speak at the Hope Foundation Rural Policy Forum in Mississippi, entitled "Economic Development in High-Poverty Rural Communities." Markets are also looking forward to what the US Republican Administration Congress, which has a majority of Democrats on funding the border security program to avoid a new partial closure of the federal government

Technical Analysis

USDJPY succeeded in achieving our first awaited target at 110.24 and breached it to settle with a daily close above it, opening the way for the upside wave to target 111.56 in the near term.

Thus, the bullish scenario will remain effective over the coming period supported by SMA 50, with a break of 110.24 that will halt the expected rally and press the price to fall again.

The trading range for today is expected among the support at 110.00 and the resistance at 111.56

Support and resistance:

Support: 109.68-109.25

Resistance: 111.07-111.45

The general trend for today is bullish