JPY Analysis 17.10.2019

The US dollar fluctuated in a narrow range, tilted lower during the Asian session to witness the rebound for the third 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 on Thursday The US economy is the largest in the world, including the FOMC members' speech.

At 06:02 AM GMT, the USDJPY fell 0.01% to 108.75 levels compared to opening levels at 108.76, after the pair reached its lowest level during the session at 108.65, while the highest level at 108.83.

Investors are currently awaiting the US economy to reveal the housing market data with the release of the Housing Starts and Building Permits for September and expectations that building permits will fall 5.8% to 1.34 million versus a rise of 7.7% at 1.43 million in August. Housing starts may also show a decline of 3.2% to 1.32 million from a decline of 12.3% at 1.36 million.

This also comes in conjunction with the release of the index of claims for the last week on the 12th of this month, which may reflect an increase of 2,000 applications to 212 thousand applications compared to 210 thousand applications in the previous weekly reading, while the reading of the claims applications index may show investors for the week that ended on the fifth of This month, a decrease of 14 thousand applications to 1,670 thousand applications compared to 1,684 thousand applications.

Markets from the world's largest industrialized nations are also eyeing the release of the Philly Fed Manufacturing Index, which may reflect a contraction in the expansion to 7.3 from 12.0 in September, before we see the release of the industrial production index which may show a 0.1% decline versus a rise. 0.6% in August, while the Energy Exploitation Rate reading may show a slowdown in growth to 77.7% versus 77.9% in August.

FOMC Fed Governor Michelle Bowman and Chicago Fed President Charles Evans speak at the Federal Reserve Bank of Chicago listening event, before we see another Federal Reserve Chairman, the Federal Reserve Bank of New York. John Williams at the Managed Funds Expectations Conference in New York.

Technical Analysis

USDJPY remains steady above 108.40, and is moving within the ascending channel shown on the chart, noting that the Stochastic is starting to provide a positive crossover signal now, waiting for the price to stimulate the resumption of the bullish bias and test 109.33 mainly.

SMA 50 continues to support the price from below, so we continue to favor the bullish trend provided stability above 108.40.

Expected trading range for today is between 108.20 support and 109.50 resistance.

Expected trend for today: Bullish.