USDJPY Analysis 18.04.2019

The US dollar fell during the Asian session to witness a rebound to the second session of its highest since December 20 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 05:51 GMT, the USDJPY declined 0.17% to 111.87, compared to the opening levels at 112.06, after recording a low of 111.85 and a high of 112.07.

We followed the release of Markit Industrial PMI's preliminary reading of Japan, the world's third-largest industrial country, which showed deflation shrank to 49.5 from 49.2 in March, beating expectations of deflation to 49.4, A reading below 50 indicates a contraction of the sector, while reading at 50 or higher reflects a widening of the sector.

In another context, Bank of Japan Governor Haruhiko Kuroda said Tuesday that monetary easing could be expanded if inflationary pressures in his country are lost, as inflation is debated despite strong conditions in the labor market, adding that there is no need to change The Japanese central bank's target for inflation at 2 percent for the moment, explaining that investment fund purchases are not to stabilize the financial markets.

Japan's central bank governor Kuroda also noted that exports are somewhat weak due to the slowdown in global economic growth, noting that capital spending is very strong and that he expects his country's economy to continue to grow moderately. He said earlier this week that Japan's economy slowed slightly during Recently, wage growth has been somewhat frustrating.

Kuroda said at the time that Japan's labor productivity grew faster than other developed countries, which weighed heavily on inflationary pressures. He said there was a rise in prices in the labor-intensive sector, with the expectation 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 stable between 110 and 120 per US dollar and that the current levels are satisfactory.

On the other hand, investors are currently looking for the US economy to detect 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 reflect a 0.9% rise versus a 0.2% fall in February, The core reading of the index itself rose 0.7% from 0.4% in February.

This comes in conjunction with the April 13th Jobless Claims reading, which may reflect an 11,000 increase in demand to 207,000 versus 196,000, and the Philadelphia Manufacturing Index, which may reflect a contraction to 11.2 Compared to 13.7 in March, before we saw the initial reading of the PMI Index by the US.

It is expected that the initial reading of the PMI index for America will extend to 52.8 compared to 52.4 in March, while the preliminary reading of the PMI may show a contraction of 55.0 to 55.3, leading to a reading of wholesale stocks that may indicate slower growth To 0.3% versus 0.8% in January, and leading indicators showed accelerated growth to 0.4% versus 0.2% in February.

Technical analysis:

The USD / JPY pair continues to fluctuate near the 112.14 level, and some slight bearishness is seen with the opening of today's trading, awaiting further downside during the upcoming sessions to visit 111.30 and then 110.86 mainly.

Overall, we continue to hold the downside if 112.14 is not breached and the daily closing is above it.

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