JPY analysis 1.08.2019

The US dollar rose during the US session, its highest since late May 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 economic data expected Thursday by the US economy, the largest economy in the world.

At 05:52 am GMT, the pair rose 0.39% to 109.20 from the opening levels at 108.78, after reaching a nine-week high of 109.32, while the lowest level at 108.71 .

We followed the Japanese economy, the world's third largest industrial nation, to reveal the final reading of the Nikkei PMI, which showed a contraction of 49.4 from July's preliminary reading and expectations of 49.6 versus 49.3 last June. Yesterday, the Japanese government lowered its forecast for growth and inflationary pressures in the medium and long term.

This comes hours after the Bank of Japan on Tuesday approved a negative interest rate of 0.10% amid maintaining the asset purchase program unchanged and future interest rate trends. With the Bank of Japan cutting its inflation and growth forecasts, Held by Bank of Japan Governor Haruhiko Kuroda in Tokyo, who noted his willingness to expand stimulus if needed.

On the other hand, investors are currently looking for the US economy to release the Jobless Claims reading for the week ending July 27, which could reflect a 6K increase to 212K before we see the final reading of the Industrial PMI by Marquette From the US, which may reflect the stability of the widening at 50.0, unchanged from the previous reading of the previous month and against 50.6 in June.

Leading to the disclosure by the largest industrialized country of the index of the Industrial Supply Institute index, which may show a widening to 52.0 compared to 51.7 in June, while the same index may indicate the price index contraction contraction to 49.1 compared to 47.9, in conjunction with The construction spending index, which reflects a rise of 0.5% versus 0.8%.

This came hours after the Federal Open Market Committee decided to cut the federal funds rate by 25 basis points for the first time in more than a decade, which was expected in the markets, Federal Reserve Governor Jerome Powell during his press conference after the expiration The fact that the decision was made in view of "global developments" and "inflation" is the subject of the meeting of the Federal Commission.

In the same context, Federal Reserve Governor Paul said that the committee's decision at the July 30-31 meeting to cut interest rates to between 2.00% and 2.25% "was not the beginning of a long series of interest rate cuts." To global risk insurance and that it is not necessarily one-time only, reflecting that the course of monetary policy in the future will depend on the impact of global economic data on the performance of the economy.

Technical Analysis

USDJPY succeeded in breaking the 108.93 level with the opening of today's trading and closing the last four hour candlestick above it to complete the formation of the double bottom pattern that appears in the picture and is doing its positive impact, awaiting further upside in the coming period. The next positive targets are 109.60 and 110.25.

Therefore, we continue to favor the bullishness supported by the SMA 50, noting that stability above 108.93 represents the first requirement for the continuation of the expected rally.

The trading range for today is among the key support at 108.70 and resistance at 110.00

The general trend for today is bullish.