JPY Analysis 16.10.2019

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 late May 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 Wednesday The US economy is the largest in the world, including the FOMC members' speech.

At 06:02 AM GMT, the US dollar against the Japanese yen fell by 0.17% to 108.68 levels compared to the opening levels at 108.86, after the pair reached its lowest level during the trading session at 108.60, while the highest level at 108.87.

Investors in the US economy are awaiting the release of retail sales, which account for about half of consumer spending, which accounts for more than two-thirds of US GDP, which may reflect a slowing pace of growth to 0.3% from 0.4% last August. The core of the index itself grew 0.2% against steady at zero levels in August.

This comes before we see the FOMC and Chicago Fed Governor Charles Evans talk about the current economic conditions and monetary policy at the Greater Peoria Development Board in Illinois, and before the release of the US housing market data with the housing index read by the National Association of Builders. Houses which may reflect stability at 68 during October.

Markets are also looking to the Wholesale Inventories figure, which may show a slowdown in growth to 0.3% from 0.4% in July, before we see the release of the Beige Book report, which is important two weeks before the FOMC meeting. One of the cornerstones on which the Fed's monetary policy makers build their decisions is to support and stimulate the US economy.

The upcoming FOMC meeting is scheduled to be held in Washington on October 29-30. Investors are also looking ahead to FOMC and Fed Governor Lyle Brainard's speech later today. Digital currency and policy implications at the event hosted by the Peterson Institute for International Economics in Washington.

Technical Analysis

USD / JPY managed to breach the 108.40 level and close the daily candle above it, confirming the extension of the bullish wave to target 109.33 as the next major stop, organized inside the ascending channel shown in the chart above.

Therefore, we are waiting for further rallies in the coming sessions, keeping in mind that a break of 108.40 could push the price to test 107.45 areas again before any new attempt to rise.

Expected trading range for today is between 108.00 support and 109.50 resistance.

Expected trend for today: Bullish.