JPY 24.07.2019

The US dollar fluctuated in a narrow range slipping towards the US session to see its rebound for the second consecutive session from its highest since July 17 against the Japanese Yen following developments and economic data that followed the Japanese economy, the third largest economy in the world and on the eve of developments and data Economic outlook on Wednesday by the US economy, the world's largest economy.

At 05:57 GMT, the USDJPY declined 0.10% to 108.12 from the opening levels at 108.23, after reaching the lowest level at 108.11, while the highest at 108.28.

We followed the release of Markit Industrial PMI's preliminary reading of Japan, the world's third-largest industrial country, which showed deflation shrank to 49.6 from 49.3 last June, below expectations that the contraction shrank to 49.7 The index reading below 50 indicates the contraction of the sector, while the reading at 50 or higher reflects a widening in the sector.

On Tuesday, Japan's Economy Minister Toshimitsu Motegi said his country's economy was recovering gradually and that the recovery is expected to continue despite its recent slowdown. In another context, we also followed yesterday the Bloomberg news agency that the Bank of Japan Forecast inflation at its next meeting for the current fiscal year and cut its economic outlook by next week.

According to the Bloomberg report, the Japanese central bank may reduce its inflation forecast to 1.1% due to the recent slowdown in the economy, and that reduction will affect inflation expectations for the coming years. This came hours after Bank of Japan Governor Haruhiko Kuroda spoke at the International Monetary Fund In which he noted that the Japanese economy has overcome the state of deflationary inflation supported by monetary easing measures.

Bank of Japan Governor Kuroda said Monday that the Bank of Japan is continuing its monetary easing with full force until inflation is achieved at 2 percent, adding that the Japanese central bank is closely monitoring developments affecting the world's third-largest economy amid uncertainty over the pace of inflation. The growth of the global economy has escalated in recent times.

In another context, we also followed at the weekend Japanese Prime Minister Shinzo Abe said his government would take many measures to deal with the sales tax and that steps would be taken to avoid negative risks to the economy, hours after his ruling coalition won a majority in the Senate In the Japanese parliament last Sunday.

Japanese Prime Minister Abe also said on Monday that his government would work to make the economy its top priority in its fiscal policy, saying that his country would do its utmost to ease tensions between the United States and Iran. He said Tokyo wanted to play an important role by easing tensions Especially that it has a long history of friendship with Tehran.

On the other hand, investors are anticipating the initial reading of the Industrial and Service PMI Index from the United States, amid expectations that the industrial and service sector will expand to 50.9 and 51.6 versus 50.6 and 51.5 in June, before we see market data Housing with the reading of the new home sales index, which may reflect a rise of 5.1% to 659 thousand versus a decline of 7.8% at 626 thousand in May.

Technical Analysis

The USDJPY breached the 108.10 level and closed the daily candlestick above it, stopping the negative scenario suggested in our recent reports and leading the price back to the upside correction again on the way to instantaneous gains starting at 108.93.

Therefore, the bullish trend will be likely in the coming sessions, supported by moving above SMA 50, unless 108.10 and 107.75 are broken and stability below it.

The trading range for today is among the key support at 107.75 and resistance at 109.00

The general trend for today is bullish.