JPY analysis 23.05.2019

The US dollar fluctuated in a narrow range slipping towards the Asian session to see its rebound to its third session since May 7 against the Japanese Yen following developments and economic data that followed on the Japanese economy and on the eve of developments and economic data expected Thursday by the US economy The world's largest economy.

At 05:53 am GMT, the pair dropped 0.07% to 110.28 compared with the opening levels at 110.36, after reaching a low of 110.13, while the highest at 110.37.

We followed the release of Markit Industrial PMI's preliminary reading of Japan, the world's third-largest industrial country, which showed a contraction of 49.6 versus a widening of 50.2 in April, contrary to expectations of an expansion of 50.5, A reading below 50 indicates a contraction of the sector, while reading at 50 or higher reflects a widening of the sector.

Technical Analysis

The USDJPY remains stuck between the confirmation levels of 110.08 and the resistance at 110.86, so our neutral position remains intact, waiting for one of these levels to break further to define its next targets more accurately, noting that breaking the support will put the price under the corrective downward pressure again, To start with the negative targets at 109.44 and extend to 108.80, while breaching the resistance key to restore the main trend upward and target areas of 112.14 initially.

The trading range for today is expected among the key support at 109.60 and the resistance at 111.20.

The expected general trend for today: neutral.