JPY Analysis 29.08.2019

The US dollar fell during the Asian session to witness the rebound for the third session in five sessions from the highest since August 15 against the Japanese yen following the developments and economic data that followed from the Japanese economy, the world's third largest economy and on the eve of developments and economic data expected on Thursday before The US economy is the largest in the world.

At 06:15 AM GMT, the USDJPY fell 0.24% to 105.87 levels from 106.12 opening levels, after hitting a session low of 105.83 and a high of 106.13.

The Japanese Consumer Confidence figure came in at 37.1 vs. 38.8 in July, worse than expected at 37.5, hours before the release of several important economic data on Friday which may reflect slower growth in inflationary pressures. This month, the unemployment rate stabilized, industrial production growth slowed and retail sales fell last month.

On the other hand, investors are currently awaiting the US economy to reveal the second reading of GDP, which may reflect the expansion of the largest economy in the world 2.0% during the second quarter compared to the previous initial reading of 2.1% growth, while the second reading of GDP may show measured Prices have stabilized at 2.4%, little changed from the previous quarter's preliminary reading.

This comes in conjunction with the release of the Trade Balance of Goods, which may show the deficit narrowed to $ 74.0 billion from $ 74.2 billion last June, and the release of the preliminary reading of the inventory index, which may reflect a growth of 0.2% against the stability at zero levels in June In addition, the reading of the number of applications for the benefit last week on the 24th of this month, which may reflect an increase of 6 thousand applications to 215 thousand applications.

Technical Analysis

USDJPY continues to fluctuate around SMA 50, and is under constant negative pressure from SMA 50, while Stochastic is now providing a negative crossover signal.

Therefore, these factors support the chances of resuming the bearish bias during the coming sessions, which targets 105.05 then 104.00 mainly, noting that stability below 106.70 is important for the continuation of the expected decline.

Expected trading range for today is between 105.00 support and 106.50 resistance.

Expected trend for today: Bearish.