USDJPY Analysis 29.03.2019

The US dollar fluctuated in a narrowly bullish range during the Asian session to see its fourth session rebound in five sessions from its lowest since February 8 against the Japanese yen following developments and economic data followed by the Japanese economy, the world's third largest economy and on the brink of developments And economic data expected Friday by the US economy, the largest economy in the world.

At 05:43 GMT, the US dollar was up 0.13% at 110.77 compared with the opening levels at 110.63 after the pair reached a high of 110.93 and a low of 110.54.

We followed the Japanese economy's release of the Tokyo Consumer Price Index (CPI), which showed a 0.9% growth, unchanged from February, in line with expectations. The core annual reading of the index, which excludes fresh food, At 1.1% are also consistent with expectations, and the core annual reading excluding fresh food and energy showed a stable 0.7%.

This coincided with the release of labor market data for the world's third-largest economy, which showed unemployment fell to 2.3% from January's reading and expectations of 2.5%, while the job-to-job ratio index showed stability at 1.63 With little change from last January.

Before the world's third-largest industrialized nations saw the preliminary reading of industrial production show a rise of 1.4% in line with expectations compared with a 3.4% drop in January, while the annual reading of the index itself showed a decline of 1.0% compared with a rise of 0.3% in the reading Annualized for January, outpacing expectations for a 1.1% decline.

This came in tandem with the seasonally adjusted preliminary release of retail sales, which showed a rise of 0.2% from 1.8% in January, below expectations of a rise of 01.0%, while the annual reading of the same index showed a slowdown of growth to 0.4% versus 0.6% in January January, also worse than the forecast for accelerated growth to 1.0%.

To show housing market data with the annual reading of the Construction Starts Index, which showed growth accelerated to 4.2% compared to 1.1% in the previous year's January reading, in contrast to expectations of a 0.1% decline, while the annual reading of the Building Permits Index declined 3.4 % Versus 19.8% in January.

On the other hand, investors are looking for the US economy to reveal spending and personal income data that may reflect personal spending rose to 0.3% from 0.5% in December and personal income rose to 0.3% from 0.1% December, while the reading of the Personal Consumption Expenditures (CPI) indicator may show growth stabilizing at 0.2% in January.

This comes ahead of the release of the Chicago PMI, which may reflect a contraction of 61.1 vs. 64.7 in February, to reveal housing market data with the release of the New Home Sales Index, which may reflect a 2.1% 625 thousand homes compared to a 6.9% decline at about 607 thousand homes in January.

With the release of the University of Michigan's consumer confidence index, which may reflect the stability of the widening at 95.8, little change from the initial reading this month and 97.8 in February, before we see the upcoming talk of the Federal Reserve Vice President and member of the Federal Market Commission Open Randall Quarles about the overall precautionary policy at the spring meeting of the Open Market Shadow Committee in New York.

Technical Analysis

The USDJPY is retesting a fresh retest of the pivotal resistance levels between 110.76 and 110.86, accompanied by Stochastic move in overbought areas, pending a rebound on the rebound to resume the bearish correction which starts at 110.08 and extends to 109.40 After breaking the previous level.

Therefore, we will continue to bias the bearishness over intraday and short term unless the resistance levels mentioned above are breached.

The trading range for today is expected among the support at 110.00 and the resistance at 111.20.

The general trend for today is bearish.