JPY Analysis 04.10.2019

The US dollar fluctuated in a narrow range, tilted lower during the Asian session to witness the bounce for the fourth consecutive session from the highest since September 19 against the Japanese yen amid the lack of economic data from the Japanese economy and on the eve of developments and economic data expected on Friday by the US economy These include the speech of the Governor of the Federal Reserve and the speech of members of the Federal Open Market Committee.

At 06:13 am GMT the USDJPY fell 0.10% to 106.81 levels from 106.92 opening levels, after hitting a session low of 106.75 and a high of 106.93.

Investors are awaiting the US economy to release last month's labor market data, which could reflect a steady unemployment rate of 3.7%, little changed from August, while the change in jobs index for non-agricultural sectors may show accelerated job creation. The average earnings per hour may show growth slowed to 0.3% vs. 0.4%.

This comes in conjunction with the release of the Trade Balance Index, which may reflect the widening of the deficit to $ 54.7 billion compared to $ 54.0 billion in July, and with the opening of the Federal Open Market Committee and Chairman of the Federal Reserve Bank of Boston, Eric Rosengren opening remarks of the annual conference hosted by the Bank Federal Reserve in Boston.

Federal Reserve Governor Jerome Powell gave the opening remarks at the Fed listening event hosted by the Federal Reserve Bank of Washington, before FOMC and Fed Governor Lyle Brainard moderated a panel discussion titled "Measuring Maximum Employment." In a changing labor market "and within the realities of a Fed event listens.

Markets are also looking forward to Federal Reserve Chairwoman and Kansas City Federal Reserve Chairman Esther George concluding remarks at the 61st annual meeting of the National Association of Business Economics in Denver, before another panelist and Fed deputy Randall Quarles oversaw a panel discussion on the importance of stability. Prices and lower inflation in today's economy "and that also within the realities of the event the Fed listens.

This comes amid anticipation of any hints about the future of monetary policy by the Federal Reserve in the wake of a series of disappointing economic data from the US economy, which boosted the chances of monetary policy makers at the Federal Reserve to cut interest rates for the third time in a row by 25 basis points during a meeting The FOMC is next with the end of this month.

Technical Analysis

USDJPY succeeded in achieving our first awaited target at 106.70, and completed the formation of the double top pattern shown in the picture, to support the expectations for the extension of the descending wave in the short and short term, on its way to achieve negative targets reaching 106.06 and then 105.50.

Therefore, we are waiting for further declines in the coming sessions unless the price pushes to breach 107.70 and hold above it.

Expected trading range for today is between 105.80 support and 107.50 resistance.

Expected trend for today: Bearish.