JPY Technical Analysis 01.05.2019

The US dollar fluctuated in a narrow range inclined during the Asian session to see its rebound to its second lowest session since 11 April against the Japanese Yen amid a lack of economic data this week by the Japanese economy in the shadow of the longest holiday in Japan's history and after the inauguration of the Crown Prince Japan's Naruhito is the ruler of Japan and on the eve of economic developments and data expected Wednesday by the US economy, the largest economy in the world in conjunction with the proceedings of the meeting of the Federal Open Market Committee in Washington.

At 0610 GMT, the greenback was up 0.05% at 111.48 from the opening level at 111.42, after reaching a high of 111.50 and a low of 111.38.

US investors are eyeing the release of preliminary data for the labor market, with the reading of the Change in Private Sector Index, which may reflect the acceleration of job creation to 181,000 jobs, up from 129,000 in March. The monthly report of non-agricultural jobs and unemployment rates in addition to the average income per hour for the last month.

The markets are also looking for the final reading of Markit Industrial PMI by the United States, which may reflect the stability of the expansion at 52.4, unchanged from the previous reading of the previous month and the previous reading for March, before the disclosure of the index of the Institute of Industrial Supplies and The contraction may extend to 55.0 versus 55.3 in March.

To the decisions and directions expected by the Federal Open Market Committee after the expiration of its meeting which began yesterday and ends at 6:00 pm GMT amid expectations that monetary policy makers will keep the Federal Reserve rates on short-term reference rates between 2.25% and 2. 50% and work to reduce the reduction of bond buybacks before freezing them by September.

It is also expected to see after the expiration of the Federal Committee meeting and the disclosure of the monetary policy statement and the Committee's decision on the federal funds interest by about half an hour The events of the press conference of the Governor of the Federal Reserve Jerome Powell, who noted earlier that the Committee will be patient about raising interest rates in the coming period And that it would closely watch the economic developments of the world's largest economy and be affected by external challenges.

Technical Analysis

The USD / JPY pair is trading negative to gradually creep towards our main target at 110.86. Stochastic is beginning to lose its positive momentum gradually to support expectations of a continuation of the downside movement in the coming sessions, noting that breaking this level will extend the downside wave to 110.08.

SMA 50 supports bearish expectations, which requires stability to remain below 112.14.

The trading range for today is expected among the support at 110.80 and the resistance at 112.00

The general trend for today is bearish.