JPY Analysis 11.10.2019

The US dollar fluctuated in a narrow range upward during the Asian session to witness the bounce for the fourth session in seven sessions from the lowest since September 5 last 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 Friday from Ahead of the US economy the largest in the world.

At 05:59 AM GMT, the US dollar against the Japanese yen rose 0.01% to 107.99 levels compared to the opening levels at 107.98, after the pair reached its highest level since the beginning of October at 108.13, while the lowest level during The session traded at 107.85.

On the Japanese economy, the Bank of Japan's annual bank lending index showed that growth was stable at 2.4%, little changed from the previous August reading, in line with expectations. Japanese ministers said that his government would not hesitate to use fiscal policy if necessary in the shadow of concern about economic risks.

On the other hand, investors are waiting for the US economy to release the import price index, which may show a decline of 0.5% against a rise of 0.2% in August, while the annual reading of the same indicator may show a decline to 2.0% vs. 1.8%, before we see the disclosure The University of Michigan's preliminary reading of consumer sentiment may reflect a widening of 90.4 vs. 89.9 last September.

The Federal Open Market Committee (FOMC) and Boston Fed Chairman Eric Rosengren talked about monetary policy and interest rates at the US Economic Challenges in Madison, hours after Fed Governor Jerome Powell said the US economy was doing well. He faces some risks and the Fed's strategy and tools are still very effective.

Technical Analysis

USDJPY traded positively yesterday to breach the 107.70 level and stabilize above it, stopping the suggested decline in our recent reports and pushing the price to achieve more expected rise in the coming period, as an upward correction of the decline measured from 112.39 to 104.39, and approaching the 50 level Fibonacci retracement which is at 108.40.

Therefore, we expect to see more bullish bias today, and breaching the mentioned correctional level will extend the bullish wave to 109.33 as the next target, while the expected rise will remain valid unless the 107.45 level is broken and stability below it.

Expected trading range for today is between 107.45 support and 108.80 resistance.

Expected trend for today: Bullish.