JPY Analysis 17.07.2019

The US dollar fluctuated in a tight range slipping into the US session to see its rebound for the fourth session in six sessions from its highest since May 31 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 Wednesday by the US economy, the world's largest economy.

At 06:26 GMT, the pair dropped 0.04% to 108.20 from the opening level at 108.25, after reaching a low of 108.11 and a high of 108.33.

Investors are currently waiting for the US economy to release data on the housing market with the Housing Starts and Construction Permits reading for June, expected to see building permits slow to 0.1% for 1,300K versus 0.3% at 1,294K. May, while the start-up homes may show a decline to 0.7% for 1,260,000 homes versus 0.9% at 1,269,000.

This comes before we see the disclosure of the book report Beige, which is important in being issued two weeks before the meeting of the Federal Open Market Committee, which is one of the pillars on which the monetary policy makers of the Federal Reserve decisions and directions to support and stimulate the US economy, knowing that the next meeting The next federal commission will be held on 30-31 of July

Technical Analysis

The USD / JPY pair traded positively yesterday to move above 108.10, but we see that Stochastic is showing negative signs. We expect to press the pair lower again, and by looking at the chart, we find that the price is drawing a head and shoulders pattern that we believe will stimulate the price to resume The main bearish trend again.

Therefore, the overall negative scenario will remain for the next period unless the breach of 108.40 and stability above it, noting that the break 107.85 will complete the formation of the negative model and push the price to 106.78 directly.

The trading range for today is expected among the key support at 107.40 and the resistance at 108.70

The general trend for today is bearish