USDJPY Analysis 30.04.2019

The US dollar fluctuated in a tight range slipping into the Asian session to see its rebound for the third session in five sessions since December 20th against the Japanese Yen amid the tight economic data this week by the Japanese economy in the shadow of the longest vacation in Japan's history To inaugurate Japanese Crown Prince Naruhito as Japan's ruler and on the eve of economic developments and data expected Tuesday by the US economy, the largest economy in the world.

At 05:53 GMT, the USDJPY dropped 0.10% to 111.54 compared with the opening levels at 111.65, after recording a low of 111.48 and a high of 111.69.

Investors are currently waiting for the US economy to read the Labor Cost Index, which may reflect a stable 0.7% growth, unchanged from the fourth quarter, before we see housing market data released with the S & P House Price Index Growth accelerated to 0.2% from 0.1% last February, and the same index showed accelerated growth to 3.7% versus 3.6%.

Leading to the Chicago PMI reading, which could extend to 59.1 vs. 58.7 in March, before we see the Existing Home Sales reading, which may show a 1.1% rise from 1.0% in February, Reading consumer confidence, which could rise to 126.2 versus 124.1 in March.

This comes on the eve of the opening of the FOMC meeting in late April and early May amid expectations that Fed monetary policymakers will keep short-term benchmark interest rates at between 2.25% and 2.50% and work to reduce Cut bond purchases before they are frozen by September.

Other than this, we have followed this week some reports that US President Donald Trump has said that Japanese Prime Minister Shinzo Abe told him that Tokyo plans to invest $ 40 billion in automobile factories within the US territory, stating that Japan buys from the US And that Washington urged Tokyo to abolish its tariffs on US agricultural products.

Technical Analysis

The USD / JPY pair resumed its negative trading after the SMA 50 test in the past sessions, consolidating expectations for a bearish intraday basis, awaiting a key test of 110.86.

Negative Stochastic supports the continuation of the downside bias, which will remain intact unless the breach of 112.14 is breached and the daily closing is above it.

The trading range for today is expected among the support at 110.80 and the resistance at 112.14

The general trend for today is bearish