JPY Analysis 07.11.2019

The US dollar fell during the Asian session to witness a rebound for the third session from its highest since October 30, when it tested the highest since early August against the Japanese yen amid the lack of economic data by the Japanese economy and on the eve of developments and economic data expected on Thursday from Ahead of the US economy the largest in the world.

At 06:09 AM GMT the USDJPY fell 0.21% to 108.75 levels from the opening levels of 108.98, the pair's highest level during the trading session, while the pair reached its lowest level at 108.65.

Investors are currently awaiting the US economy to reveal last week's jobless claims reading, which may reflect a decline of 3 thousand applications to 215 thousand applications. The reading of the number of claims applications may show investors a decline of 30 thousand applications to 1,660 thousand applications. Before we see the release of the consumer credit reading which may show slower growth to $ 15.6 billion versus $ 17.9 billion in August.

Technical Analysis

USDJPY continues to decline to near 108.40, noting that the stochastic has eliminated its negative momentum to reach oversold areas, awaiting the price to rebound upwards and resume the upside trend that is regulated within the ascending channel shown, whose targets begin to breach 109.33. To confirm opening the way towards 110.50.

From here, our bullish outlook will remain valid unless 108.40 is breached.

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

Expected trend for today: Bullish.