JPY Analysis 03.05.2019

The US dollar fluctuated in a tight range slipping towards the Asian session to see its fifth session rebound in eight sessions from its lowest since December 20 and is preparing for its third straight weekly loss against the Japanese yen amid a lack of economic data this week by the Japanese economy In the shadow of the longest vacation in the history of Japan and after the inauguration of Crown Prince Naruhito, Emperor of Japan and on the eve of developments and economic data expected Thursday by the US economy, the largest economy in the world.

At 05:53 GMT, the USDJPY dropped 0.02% to 111.49 compared to the opening levels at 111.51, after recording a low of 111.41 and a high of 111.54.

Investors in the US economy are eyeing labor market data, which could show unemployment stabilizing at 3.8%, unchanged from March's previous reading, amid expectations that the average hourly earnings index will accelerate growth To 0.3% from 0.1% in March.

This comes in tandem with the Non-Farm Payrolls Index, which may indicate a slowdown in job creation to 181,000 jobs, up from 196,000 jobs in March, amid expectations that the trade balance index will reflect a widening deficit to $ 73.0 Billion compared to $ 72.0 billion in February, and the preliminary reading of the Wholesale Sentiment Index showed growth stability at 0.2%, little changed from February.

Leading to the final reading of the index of the Institute of Supply Services by Markit for the United States, which may reflect the stability of the widening at 52.9 compared to 55.3 in March, before the disclosure of the index of the Institute of Supply Service, which may show a wide to 57.2 compared to 56.1 in March , And we would like to point out, because the provision of services is important in the fact that the service sector in America represents more than two thirds of the GDP there.

Technical Analysis

USD / JPY is trading below the SMA 50, awaiting the resumption of the bearish trend targeting the 110.86 level initially, to continue the bearishness which depends on stability below 112.14, noting that the break of 110.86 will extend the downside wave to 110.08 directly.

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.