JPY Analysis 05.11.2019

The US dollar fluctuated in a narrow uptrend range during the Asian session to witness its bounce for the third consecutive session from the lowest since October 11 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 Tuesday from Ahead of the US economy the largest in the world.

At 05:58 AM GMT, the USDJPY rose 0.17% to 108.77 levels from 108.58 opening levels, after hitting a session high of 108.83 and a low of 108.56.

The Japanese economy followed the release of the Bank of Japan's annual monetary base reading which showed that the pace of growth accelerated to 3.1% from 3.0% in September, contrary to expectations that the pace of growth slowed to 2.9%. The Japanese began to use this indicator as its main operational target for the monetary base chart since April of 2013.

On the other hand, investors are awaiting the release of the US Trade Balance, which may reflect a narrowing of the deficit to $ 52.9 billion compared to $ 54.9 billion in August, ahead of the final reading of the US Markit Service Provider's Markit Index. Which may reflect a steady expansion of 51.0, little changed from the initial reading for October and versus 50.9 in September.

As for the ISM reading, which may show a widening of 53.5 vs. 52.6 in September, we should note that the service supply is important because the US service sector accounts for more than two-thirds of GDP. With the release of a statistical reading of jobs and turnover, which may reflect a rise to 7.06 million compared to 7.05 million in August.

Technical Analysis

USDJPY traded positively yesterday to breach 108.40 and settle above it, reactivating the bullish corrective scenario again, on its way to achieve positive targets starting at 109.33 and extending to 110.50 after breaching the previous level.

Therefore, a bullish bias is likely for today unless 108.40 levels are broken and then 108.15 remains intact.

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

Expected trend for today: Bullish