JPY Analysis 13.09.2019

The US dollar fluctuated in a narrow range, tilted lower during the Asian session to see a rebound from the highest since early August, when it tested the highest since late May, while still making its third weekly gain in a row from its lowest level in three years against The Japanese Yen is following the economic developments and data that followed from the Japanese economy and on the threshold of developments and economic data expected on Friday by the US economy.

At 06:32 AM GMT, the USDJPY fell 0.06% to 108.03 levels from the opening levels of 108.10, after hitting a session low of 108.02 and a six-week high of 108.26.

The Japanese economy, the third largest in the world and the third largest industrial country in the world, followed the release of the industrial sector data with the release of the final reading of industrial production which showed a steady decline of 1.3%, little changed from the previous reading in July. It is in line with expectations, against a 3.3% decline in June.

On the other hand, markets are looking ahead to the US economy, the largest economy in the world to reveal the reading of retail sales, which accounts for about half of consumer spending, which represents more than two thirds of US GDP, which may reflect the slowing pace of growth to 0.2% vs. 0.7% in July The core reading of the index may also show a slower pace of growth to 0.1% versus 1.0% in July.

This comes in conjunction with the release of the import price index, which may show a decline of 0.5% versus a rise of 0.2% in July, while the annual reading of the same indicator may widen the decline to 2.0% against 1.8%, and before we see the release of wholesale inventories, which may It shows a rise of 0.3% against steady June zero levels.

As a result of the preliminary reading of the University of Michigan's Consumer Confidence index, which may reflect an expansion to 90.4 vs. 89.9 in August, otherwise, US President Donald Trump yesterday continued his criticism of the Federal Reserve for interest on federal funds, particularly after the central bank deepened. The Euro-Zone's negative deposit rate to -0.50% and its intention to reactivate the QE program later.

"They are trying, and are succeeding, to devalue the euro against an overly strong dollar, which is hurting US exports," the US president said Thursday, tweeting through his official Twitter account. They get money to borrow, while we pay interest! "

US President Trump on Tuesday called on the Federal Reserve and its governor, Jerome Powell, to cut interest rates on federal funds "to zero or less," less than a week before the September 17-18 FOMC meeting, which is expected to be disclosed. In his report, the members of the committee expected growth, inflation and unemployment rates in addition to the future of interest rates for the next three years.

Technical Analysis

USDJPY succeeded in reaching our first awaited target at 108.30, showing some slight bearish bias due to the negativity of stochastic, but it is getting sustained positive support from SMA 50, supporting the chances of breaching the mentioned level and opening the way for 109.30 as a next stop.

From here, we continue to favor the bullishness over the coming sessions, keeping in mind that a break of 107.70 could push the price to retest 106.70 areas before any new attempt to rise.

Expected trading range for today is between 107.70 support and 109.00 resistance.

Expected trend for today: Bullish.