JPY Analysis 21.10.2019

The US dollar fluctuated in a narrow range, tilted lower during the Asian session to witness a rebound for the third consecutive session from the highest since early August, when it tested the highest since late May against the Japanese yen following the developments and economic data that followed on Monday on the Japanese economy Amid the dearth of economic data earlier this week by the US economy.

At 06:55 am GMT, the US dollar against the Japanese yen fell by 0.01% to 108.47 levels compared to the opening levels at 108.48, after the pair reached its lowest level during the trading session at 108.29, while the highest level at 108.55, knowing The pair started the session on a bullish price gap after the pair concluded last week's trading at 108.45.

This was followed by the release of the Trade Balance Index which showed the deficit narrowed to 123 billion yen from 144 billion yen in August, contrary to expectations for a surplus of 54 billion yen. The figure was 97 billion yen from 117 billion yen in August, contrary to expectations for a widening deficit of 178 billion yen.

This came with the annual reading of exports decreased to 5.2% vs. 8.2%, below expectations for a decline of 3.6%, also showed the annual reading of imports reduced the decline to 1.5% vs. 11.9%, beating expectations for a decline of 2.8%, came before The overall manufacturing activity index showed steady at zero against 0.2% in July, below expectations for a 0.1% rise.

Technical Analysis

USD / JPY continues to fluctuate at the 108.40 level and hold steady above it, and the price gets sustained support from SMA 50, in conjunction with stochastic entering oversold areas.

Therefore, these factors encourage us to continue to favor the bullish trend for the coming period, whose next target is located at 109.33, recalling the importance of stability above 108.40 to achieve it.

Expected trading range for today is between 108.00 support and 109.33 resistance.

Expected trend for today: Bullish.