JPY Analysis 19.08.2019

The US dollar fluctuated in a narrow uptrend range during the Asian session to witness the bounce for the fourth session in six sessions from the lowest since January 3 last following the developments and economic data followed by Monday by the Japanese economy, the third largest economy in the world amid the scarcity of data Economic earlier this week by the US economy the largest economy in the world.

At 06:11 AM GMT, the US dollar against the Japanese yen rose 0.07% to 106.39 levels compared to the opening levels at 106.32, after the pair reached its highest level during the session at 106.49, while the lowest level at 106.22, knowing The pair started this week on a bearish price gap after closing last week at 106.38 levels.

The Japanese Trade Balance figure showed a deficit of 250 billion yen versus a surplus of 590 billion yen in June, worse than expectations for a deficit of 195 billion yen, while the seasonally adjusted reading of the index showed widening deficits. To 127 billion yen from 34 billion yen in June, against expectations of a widening deficit of 151 billion yen.

This came as the annual export reading showed that the decline narrowed to 1.6% from 6.6% in the previous annual reading for June, beating expectations for a decline to 2.3%, and the annual reading of imports reduced the decline to 1.2% against 5.2% in the reading The annual figure for the month of June, well above expectations for a contraction of 2.3%.

Later this week, investors await the Federal Open Market Committee (FOMC) and Federal Reserve Deputy Governor Randall Quarles' speech on community development at the Utah Center for Settlement Stations in Salt Lake City on Tuesday, ahead of revelation hours. For the minutes of the FOMC meeting held at the end of last July.

Technical Analysis

USD / JPY continues to fluctuate around SMA 50, and holds steady below 106.70, noting that Stochastic is providing negative signals over the four-hour time frame.

Therefore, these factors encourage us to continue to favor the bearishness during the coming sessions, and the price needs to break 106.05 level to facilitate the task of heading towards our negative targets starting at 105.05 and extending to 104.60, noting that breaching 106.70 will push the price for further bullish correction over intraday basis. .

Expected trading range for today is between 105.50 support and 106.90 resistance.

Expected trend for today: Bearish.