JPY Analysis 04.09.2019

The US dollar fluctuated in a narrow uptrend range during the Asian session to witness the bounce for the fifth session in eight sessions from the lowest since November 9, 2016 against the Japanese yen amid the lack of economic data by the Japanese economy and on the eve of developments and economic data expected today Wednesday by the US economy which includes FOMC member’s speech.

At 06:03 AM GMT, the USDJPY rose 0.12% to 106.07 levels from 105.94 opening levels, after hitting a session high of 106.08 and a low of 105.83.

Investors are now awaiting the US economy to release its trade balance reading, which may reflect a narrowing of the deficit to $ 54.2 billion from $ 55.2 billion in June, ahead of the FOMC and New York Federal Reserve Chairman's speech. Federalist John Williams at the Euromoney Conference in New York.

Later in the day, Federal Open Market Committee (FOMC) and St. Louis Federal Reserve Chairman James Pollard will deliver the opening speech along with Fed Governor and Federal Open Market Committee member Michelle Bowman at the event hosted by the St. Louis Federal Reserve Bank in St. Louis. Louis.

This comes before we see the release of the Beige Book report, which is important in that it is issued two weeks before the meeting of the Federal Open Market Committee, which is one of the pillars on which the monetary policy makers at the Federal Reserve Bank decisions and directions to support and stimulate the US economy, knowing that the meeting The next FOMC is scheduled to be held in Washington on September 17-18.

Federal Open Market Committee (FOMC) Chairman and President of the Federal Reserve Bank of Chicago Charles Evans will deliver the opening speech at a conference on North American trade in Detroit. This comes just hours before the labor market data was released last month and Fed Governor Jerome Powell delivered a speech titled "Economic Outlook. And monetary policy "at an event hosted by the Swiss Institute of International Studies in Zurich.

Technical Analysis

USDJPY managed to breach the 106.06 level and hold with a daily close below it, which supports our continuation of the bearish trend effectively during the coming sessions, paving the way towards our first negative target at 105.05.

Therefore, the bearishness will remain valid for the coming sessions unless 106.70 is breached and stability above it.

Expected trading range for today is between 105.20 support and 106.50 resistance.

Expected trend for today: Bearish.