JPY Analysis 21.08.2019

The US dollar rose during the Asian session to witness the bounce for the fifth session in eight sessions from the lowest since January 3 last amid the lack of economic data from the Japanese economy, the world's third largest economy and on the eve of developments and economic data expected Wednesday by the US economy Economy in the world.

At 06:03 AM GMT the USDJPY rose 0.25% to 106.50 levels from the opening levels of 106.23, the pair's lowest level during the trading session, while the pair achieved the highest at 106.55.

Investors in the US economy are awaiting the release of the housing market data with the release of the Existing Home Sales which may show a 2.5% rise to 5.41 million homes versus a 1.7% decline at 5.27 million homes in June. The minutes of the FOMC meeting were held at the end of last July.

By Thursday, we look forward to the Kansas City Federal Reserve's Jackson Hole Economic Policy Symposium, which will be attended by global central bankers and finance ministers as well as academics and financial market participants from around the world. Powell under the title "Challenges of Monetary Policy" during the proceedings of the seminar.

Technical Analysis

USDJPY is showing a bullish bias as the Stochastic is positive, on the way to a new test of the pivotal resistance level of 106.70, and as long as the price is below this level, our bearish outlook will remain valid for the coming period, awaiting 105.05 then 104.60.

Recall that breaching the mentioned resistance will push the price for a further upside correction, reaching its next target at 107.70.

Expected trading range for today is between 105.70 support and 107.00 resistance.

Expected trend for today: Bearish