USDJPY Analysis 11.03.2019

The US dollar fluctuated in a narrow bullish range during the Asian session to see its rebound to its second-lowest session since the end of February against the Japanese Yen following a speech by the Federal Reserve Governor following the economic developments and data that followed on the Japanese economy and on the eve of developments and economic data expected On Monday by the US economy, the world's largest economy.

At 06:01 GMT, the USDJPY rose 0.11% to 111.13 from the opening level at 111.00 after the pair reached a high of 111.16 and the lowest at 110.88. As the pair ended last week trading at 111.15 levels before opening this week on a low price gap.

From the Japanese economy, the Bank of Japan (BOJ) released its annual reading of the Bank of Japan's M2 lending index, which showed growth accelerated to 2.4% from 2.3% in the previous January reading, in line with expectations, before we see the annual reading of the Demand Index Machinery equipment, which showed a widening decline to 29.3% compared to 18.8% in January.

Looking ahead to the US economy, the Retail Sales survey, which accounts for nearly half of consumer spending, which accounts for more than two-thirds of US GDP, may reflect stability at zero levels versus a 1.2% drop in December, The same index rose 0.4% against a 1.8% drop, before we saw a reading of business inventories, which could show a 0.6% rise from a 0.1% drop last November.

Technical analysis

The USD / JPY fluctuates at the support level at 110.96 in a sideways trend which tends to rise at the end of the correction wave and to return to the main upside path, provided that the resistance level is breached at 111.37 and the closing above it.

The price is trading between the moving averages 7 which is below the price and (20-50) who move above the price and therefore the moving averages constitute support levels and resistance to the price.

Stochastic is on a bullish trajectory close to the overbought area, which is a sign of a possible weakness in the Mayar, resistance to the price and a return to the sideways path that tends to fall towards the support of 110.96, possibly towards the bottom line of the ascending channel which has been trading since the beginning of this year.

The trading range for today is expected among the support at 110.96 and the resistance at 111.37

The expected general trend for the day: sideways and wait for a break from the previous two levels