USDJPY Analysis 01.04.2019

The US dollar rose during the Asian session to rebound to the fifth session in six sessions of its lowest since February 8 against the Japanese yen following developments and economic data that followed the Japanese economy, the third largest economy in the world and on the eve of developments and economic data expected on Monday by the US economy.

At 05:59 GMT, the USDJPY rose 0.19% to 111.05 compared to the opening levels at 110.80, the pair's lowest level during the session, while its highest since March 20 at 111.18.

We have followed the Japanese economy, the world's third-largest economy, to reveal the Industrial and Service Tankan Index which showed that the industrial sector contracted to 12 versus 19 in the fourth quarter, worse than expected at 13, and the service sector expanded to 21 versus 24 In the fourth quarter, also worse than expectations at 22.

This came before we also saw the world's third largest industrial nation unveiling the final reading of the Nikkei Industrial PMI, which showed a contraction of the widening to 49.2 compared to March's preliminary reading and expectations as well as the previous reading for February at 48.9.

On the other hand, investors are currently waiting for the US economy to reveal a reading of retail sales, which accounts for about half of consumer spending, which accounts for more than two-thirds of US GDP, which could accelerate growth to 0.3% from 0.2% in January, while The core reading of the index itself may show a slowdown in growth to 0.4% from 0.9% in January.

The markets are also looking for the final PMI reading from Markit for the US last month, which may reflect the stability of the widening at 52.5 vs. 53.0 in February, before the ISI Manufacturing Index, which may show a widespread to 54.3 Compared to 54.2 in February, in conjunction with the January Wholesale Inventories reading.

Technical analysis:

The USDJPY pair opened higher today to break above 110.86 and settle above it, completing the formation of a double bottom pattern that shows its image features, which stops the negative scenario suggested in our recent reports to push the pair higher again.

Therefore, the upside will be expected in the coming sessions with the support of moving above SMA 50, noting that our main awaited targets are at 111.75 then 112.14, while achieving stability above 110.86.

The trading range for today is expected among the support at 110.50 and the resistance at 112.00.

The general trend for today is bullish.