JPY Analysis 12.11.2019

The US dollar fluctuated in a narrow, bullish range during the Asian session against the Japanese yen following the developments and economic data that followed on Tuesday on the Japanese economy and amid the scarcity of economic data earlier this week by the US economy, the largest economy in the world and looking forward to the speech of US President Donald Trump in New York.

At 06:03 AM GMT the USDJPY rose 0.12% to 109.18 levels from the opening levels of 109.18, after hitting a session high of 109.21 and a low of 108.99.

The Japanese economy followed the release of the preliminary annual reading of the Machinery Equipment Orders which showed a decline to 37.4% versus 35.5% in September. This came hours after the Bank of Japan released its Summary Report which said the bank should The Japanese central bank will provide explanations for the move towards lowering interest rates and adopting further stimulus if there is a potential to weaken inflation growth momentum. The Bank of Japan should clarify a position on the continuation of a strong monetary easing program.

On the other hand, investors are currently awaiting the outcome of the US President's speech at the Economic Club in New York, before witnessing the speech of the Deputy Governor of the Federal Reserve and Federal Open Market Committee Member Richard Clarda speech entitled "Monetary Policy, Price Stability and Bond Returns" at a conference sponsored by The Bank for International Settlements and the Federal Reserve as well as the Swiss National Bank in Switzerland.

This comes just hours before the start of the semi-annual testimony of the Federal Reserve Governor Jerome Powell before the US Congress in Washington, where he is expected to give tomorrow the first half of his semi-annual testimony on policy before the Financial Services Committee in the House of Representatives, before Powell will deliver after Tomorrow, the second half of his testimony before the Senate Banking Committee.

Technical Analysis

USD / JPY is based on SMA 50 and rebounds upwards, approaching 109.33 again, and we see that the Stochastic is providing positive signals that support the chances of breaching the mentioned level and then rush to achieve further rallies in the coming period, whose targets reach 110.50. .

From here, the bullish trend will remain intact for today, organized within the ascending channel shown in the picture, while recalling the importance of stability above 108.40 to continue the expected rise.

Expected trading range for today is between 108.40 support and 110.00 resistance

Expected trend for today: Bullish