JPY analysis 16.07.2019

The US dollar fluctuated in a narrow range inclined to rise during the US session to see its rebound for the second session of its lowest since July 5 against the Japanese yen amid a lack of economic data earlier this week by the Japanese economy and on the eve of developments and economic data expected on Tuesday from Ahead of the US economy, the largest economy in the world, including Fed Chairman Jerome Powell and many members of the Federal Open Market Committee.

At 0610 GMT, the USDJPY rose 0.10% to 108.02 from the opening levels at 107.91, after reaching the highest level at 108.09, while the lowest at 107.82.

Investors are looking forward to Federal Reserve Vice Governor and Federal Open Market Committee member Michelle Bowman's opening remarks at the Federal Fed hearing in Atlanta before we see a reading of the import price index, which could reflect a 0.7% drop from 0.3%. May, as the annual reading of the index itself may show the widening decline to 2.1% versus 1.5%.

This comes in conjunction with the disclosure by the US economy of reading retail sales, which account for about half of consumer spending, which accounts for more than two-thirds of US GDP, which may reflect slower growth to 0.1% versus 0.5% in May, as may appear reading Core for the same index slowed growth to 0.1% versus 0.5% in May.

Also, the world's largest industrial producer may see the Industrial Production Index reading, which may show a slowdown in growth to 0.1% from 0.4% in May, while the Energy Efficiency Index may show accelerated growth to 78.2% versus 78.1%. To witness the release of housing market data with the housing index reading released by the National Association of Home Builders, which may reflect stability at a value of 64 in June.

This comes in conjunction with the reading of wholesale stocks, which may indicate a slowdown in growth to 0.4% from 0.5% in April, leading to Federal Reserve Governor Jerome Powell delivering a speech entitled "Post-crisis monetary policy aspects" at the French G7 Presidency 2019 in Paris, ahead of the talk of Chicago Reserve Bank President and Federal Committee member Charles Evans in an interview with CNN-BC.

Technical Analysis

USD/JPY is trading below 108.10, and negative pressure remains for the coming period, supported by SMA 50, awaiting a major 106.78.

Stochastic loses its positive momentum gradually to support the bearish outlook, which requires stability to remain below 108.10.

The trading range for today is expected among the key support at 107.30 and the resistance at 108.60.

The general trend for today is bearish.