JPY Analysis 14.10.2019

The US dollar fluctuated in a narrow range, tilted lower during the Asian session to witness a rebound for the second session from its highest since early August, when it tested its highest since late May last against the Japanese yen amid the lack of economic data earlier this week about the Japanese economy Because of the holiday of health and sports there and the US economy also on Monday because of the holiday of Columbus.

At 06:22 AM GMT, the USDJPY fell 0.01% to 108.27 levels compared to opening levels at 108.28, after the pair reached its lowest level during the session at 108.20, while reaching the highest at 108.52.

Last Friday, Bank of Japan Governor Haruhiko Kuroda said that the Bank of Japan has many tools to enhance monetary easing in the country, noting that the Bank of Japan's policies should not be judged by looking at short-term policies only. More flexible than the Fed or the European Central Bank and it has a wide scope to move and strengthen monetary policy.

On the other hand, we also followed last Friday's announcement by the Federal Reserve of its plans to start buying Treasury bills for the United States of $ 60 billion per month by the beginning of this week and until the second quarter of 2020, following the recent intervention of the Federal Reserve to control On repo rates and pumping liquidity into the markets to keep federal funds rates overnight.

Technical Analysis

USDJPY is testing the 50% Fibonacci retracement level, which is an important resistance at 108.40, showing some slight bearish bias affected by stochastic negativity, while SMA 50 continues to provide positive support for the price.

Therefore, we believe that chances are available for resuming the upside move in the coming sessions, targeting 109.33 as the next major stop, while achieving it requires stability above 107.45.

Expected trading range for today is between 107.60 support and 109.10 resistance.

Expected trend for today: Bullish.