JPY Analysis 10.10.2019

The US dollar fluctuated in a narrow uptrend range during the Asian session to witness the bounce for the third session in six sessions from the lowest since September 5 last yen against the Japanese yen following the developments and economic data that followed from the Japanese economy and on the eve of developments and economic data expected on Thursday from Ahead of the US economy the largest in the world.

At 05:58 AM GMT, USD / JPY rose 0.01% to 107.49 levels from 107.48 opening levels, after hitting a session high of 107.77 and a low of 107.04.

The Japanese economy followed the release of inflation data with the release of the PPI reading, which is a preliminary indicator of inflationary pressures, which showed steady at zero levels in line with expectations against a contraction of 0.3% last August, while the annual reading of the same indicator showed the expansion of deflation to 1.1% is also in line with expectations versus 0.9% in the prior yearly reading for August.

This came in conjunction with the release of the machinery orders index, which showed that the decline shrank to 2.4% from 6.6% in July, worse than expectations for stability at zero levels, while the annual reading of the same index showed a decline of 14.5% against a rise of 0.3%, also worse Expectations of a decline of 8.4%, and also with the annual reading of bank lending showed slower growth to 2.0% compared to the previous reading and expectations of 2.1%.

On the other hand, investors are awaiting the US economy to release inflation data with the release of the CPI reading which may reflect the stability of growth at 0.1% unchanged from August, while the core reading of the same indicator may show growth slowed to 0.2% vs. 0.3% While the annualized reading of the index may show acceleration of growth at 1.7% vs. 1.8%, the core annual reading of the index may reflect the stability of growth at 2.4%.

This comes in conjunction with the release of the index of claims for the last week on October 5, which may reflect a decrease of 4 thousand applications to 215 thousand applications compared to 219 thousand tabs the previous weekly reading, while the reading of the claims application index may show investors for the past week in September 28 Stabilizes little changed from the previous weekly reading of 1,651 thousand applications.

Technical Analysis

USD / JPY is trading today with a significant rise to test the pivotal resistance of 107.70 and hold steady below it so far, accompanied by the emergence of clear negative signals through the stochastic, waiting to stimulate the price to resume the bearish bias in the coming sessions.

Therefore, the bearish scenario will remain valid during the coming sessions provided that the stability is below the mentioned resistance.

Expected trading range for today is between 106.60 support and 108.10 resistance.

Expected trend for today: Bearish.