USDJPY Analysis 11.04.2019

The US dollar fluctuated in a narrow bullish range during the Asian session to see its rebound to its second-lowest session since the beginning of April 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 Thursday by the US economy, the world's largest economy.

At 05:59 GMT, the USDJPY rose 0.05% to 111.07 from the opening levels of 111.01, after reaching a high of 111.13, while the lowest at 110.91.

We followed the Bank of Japan's release of the annual reading of the Bank of Japan's M2 lending index, which showed a steady growth of 2.4% in line with expectations, unchanged from last year's February reading. This came hours after Bank of Japan Governor Haruhiko Kuroda That his country's economy is growing at a moderate pace and that the Japanese central bank's inflation target of two percent helps stabilize the currency in the long term.

Kuroda also said Wednesday that the Bank of Japan is trying to create the conditions in which inflationary pressures are accelerating in parallel with the rise in corporate profits and the increase in wages, with the hope that inflation may stabilize at only one percent as the momentum of wage growth weakens, adding that exports and productivity are affected by the slowdown of economic growth And that achieving inflation target of 2% may take some time, explaining that it is appropriate to proceed with monetary easing.

On the other hand, the markets are currently waiting for the US economy to release the Producer Price Index (PPI), which is a preliminary index of inflationary pressures, which may reflect a rapid growth to 0.3% from 0.1% in February, while the same index may show growth stability at 1.9 A little less than the previous year's reading for February.

In the same context, the core reading of the PPI may accelerate growth to 0.2% from 0.1% in February, while the core annualized reading of the same index may show a slowdown in growth to 2.4% from 2.5% in the previous reading, Which is expected to rise by 8K to 210K during the week of April 6th.

The ongoing jobless claims index may also show a rise of 18K to 1,735K in the last week on March 30th, before the Federal Open Market Committee (FOMC) meeting was attended by Fed Deputy Governor Richard Clarda and Michel Baumann Main Bank of New York Fed and St. Louis Fed John Williams and James Pollard.

This comes hours after the minutes of the meeting of the Federal Open Market Committee held on 19-20 March, which touched on patience and control of developments and economic data with a gradual reduction of the reduction of bond buyback until September, amid the reduction of the Commission's expectations for the pace Growth and raising its unemployment expectations, as well as its expectations of a rate hike this year, while the Committee kept its expectations of raising it once next year and then agreed to stay at rates between 2.25% and 2.50%.

Technical analysis:

The USDJPY pair touched 110.86 and rebounded from there. The upside scenario remains valid for the coming period, supported by the positive signal provided by Stochastic, awaiting a breach of 111.25 to facilitate the move toward the main target at 112.14.

Keep in mind that a break of 110.86 and stability below it will put the price within the corrective correction path again.

The trading range for today is expected among the support at 110.60 and the resistance at 112.00.

The general trend for today is bullish.