USDJPY Analysis 16.04.2019

The US dollar fluctuated in a tight range slipping during the Asian session to see its rebound to its second-highest session since March 5 against the Japanese Yen following developments and economic data that followed on the Japanese economy. Following a talk by a member of the Federal Open Market Committee and Reserve Bank of Boston Federal Erik Rosengren at Davidson College, North Carolina, on the eve of economic developments and data expected Tuesday by the US economy, the largest economy in the world.

At 05:49 GMT, the USDJPY declined 0.09% to 111.94 compared to the opening levels at 112.04, after reaching the lowest level at 111.89, while reaching a high of 112.05.

We followed the Japanese economy, the third largest industrial country in the world, to release industrial data with the Tertiary Industrial Index, which showed a decline of 0.6% versus 0.6% in January, worse than the 0.2% decline. BOJ Governor Haruhiko Kuroda said his country's economy slowed slightly and wage growth was somewhat disappointing.

Kuroda also noted that Japan's labor productivity registered faster growth than other developed countries, which weighed heavily on the performance of inflationary pressures. He pointed out that there is a rise in prices in the labor sector, which is labor intensive. He pointed out that the next step would be to cut interest rates. The Japanese central bank has time to make a decision, adding that the yen is stabilizing between 110 and 120 per dollar and that the current levels are satisfactory.

In another context, we followed yesterday the Japanese Minister of Economy Toshimitsu Motegi told a news conference with US Trade Representative Robert Laitzer in Washington that the trade exchange between his country and the United States "frank and good exchange," in response to US President Donald Trump's statement that he changed Satisfied with Japan's trade surplus with his country of $ 69 billion and that he wanted a two-way deal to deal with that.

The comments were made by Japanese Economy Minister Motige after the launch of trade talks between Japan and the United States, which will continue until next Thursday, following the adoption of the United States under the administration of US President Trump commercial protectionism and the work of many countries to enter into trade negotiations with the Department Trump to avoid the outbreak of trade war.

In addition, we would like to point out that the Japanese government recently announced a 10-day holiday from Saturday, 27 April to Monday, 6 May, for the celebration of the rise of the new emperor during the official holiday, Crown Prince at the beginning of May, and we would like to point out that this six-day vacation will be the longest in Japan's history.

On the other hand, the markets are looking to the US economy, the world's largest industrial producer, for the Industrial Production Index, which may reflect the acceleration of growth to 0.2% from 0.1% in February. The Energy Use Index showed growth accelerated to 79.2% against 78.2 And before we see the housing index reading by the National Association of Home Builders, which may reflect a widening to 63 versus 62 in March.

Technical analysis:

The USDJPY remains steady below 112.14, keeping the bearish scenario intact over the intraday basis after the price failed to breach the mentioned high, awaiting negative trading to visit 111.01 and then 110.66 in the coming period.

Conversely, keep in mind that a breach of 112.14 will lead the pair to resume the short term uptrend and extend the upside wave to 113.10 as the next major station.

The trading range for today is among the key support at 111.10 and resistance at 112.60

The general trend for today is bearish