USDJPY Analysis 18.02.2019

The US dollar fluctuated in a narrow bullish range during the Asian session to see its rebound to its second-lowest session since February 11 against the Japanese Yen following developments and economic data followed Monday by the Japanese economy and amid the absence of the US market earlier this week due to holiday Presidents' Day in the United States.

At 05:55 GMT, the pair rose 0.03% to 110.53 compared with the opening levels at 110.47 after the pair reached a high of 110.58 and a low of 110.39.

On the Japanese economy, the world's third-largest economy saw a reading of the Machine Rate Index, which showed a 0.1% drop from last week's zero, as opposed to expectations of a 1.1% decline, while the annual reading of the index itself widened to 0.9 Versus 0.8% in the previous reading for the month of November, below expectations of 3.40%.

The Japanese government announced earlier this month a ten-day holiday from Saturday 27 April to Monday, May 6 next year for the celebrations of Japan's rise of the new emperor to rule there during the official holiday, and that to be crowned Crown Prince at the beginning of May, and we wish to point out that this six-day holiday will be the longest in Japan's history.

Technical analysis:

The USD/JPY pair started to rebound after testing the 110.24 level in the last sessions, supported by SMA 50 that protects the mentioned level, awaiting further upside in the coming sessions, with our next target at 111.56.

Keep in mind that a break of 110.24 will halt the expected rally and pressure the price to initially target areas of 109.16. The trading range for today is expected among the support at 110.00 and the resistance at 111.30.

The general trend for today is bullish.