JPY Analysis 14.11.2019

The US dollar fluctuated in a narrow range, tilted lower during the Asian session to witness the rebound to the sixth session from its highest since late May 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 Thursday by the US economy Fed Governor Jerome Powell testified before Congress in Washington as well as FOMC members' speech.

At 05:59 AM GMT the USDJPY fell 0.06% to 108.75 levels from 108.82 opening levels, after hitting its lowest level since Nov. 5 at 108.63, while hitting its highest level during the week. The trading session was 108.86.

The Japanese economy followed the release of Q3 growth data with the release of the seasonally adjusted preliminary GDP figure which showed growth slowed to 0.1% vs. 0.3% in the second quarter, worse than expectations for slowing growth to 0.2%, while the reading showed The annualized price index itself accelerated growth to 0.6% versus 0.4% in the second quarter, beating expectations for a 0.5% growth.

On the other hand, investors are looking forward to the speech of Fed Vice Governor and Federal Open Market Committee member Randall Corrales via the opening speech at the annual conference of the International Association of Insurance Supervisors in Abu Dhabi, before we see the release of the producer price index, which is a preliminary indicator of inflationary pressures. That may reflect 0.3% growth versus a 0.3% contraction in September.

The core PPI reading also shows a 0.2% growth versus a contraction of 0.3%, coinciding with the release of the jobless claims for the week ending on the 9th of this month, which may reflect an increase of 4 thousand applications to 215 thousand applications, while the reading may show Continued for the week ended on the second of this month, a decrease of 4 thousand applications to 1,685 thousand applications.

This comes before the Federal Reserve Deputy Governor and FOMC Member Richard Clarda talked about the monetary policy strategy, tools, and communication practices at the Cato Institute annual monetary conference in Washington, before we saw the speech of Chicago Fed Chairman Charles Evans and the committee member. Federalism at the annual Ventec conference hosted by the Federal Reserve Bank of Philadelphia.

Federal Reserve Governor Jerome Powell is expected to testify in the second half of his monetary policy testimony before the Senate Banking Committee on Wednesday after he made the first half of his policy testimony before the Services Committee. Finance in the House.

The President of the Federal Reserve Bank of New York and a member of the Federal Open Market Committee will also deliver the opening speech at the Economic Policy Conference in Asia, hosted by the Federal Reserve Bank of San Francisco, before witnessing the speech of St. Louis Federal Reserve Chairman and Federal Reserve Board member James Pollard. About monetary policy at the Rotary Club in Louisville.

Technical Analysis

USDJPY has been trading negatively since yesterday to test support for the bullish correction channel, noting that the Stochastic is showing positive signals over the 4-hour time frame, keeping chances for positive trading in the coming sessions.

Therefore, we hold onto our bullish outlook unless 108.40 is breached and hold below it, noting that our main targets start at 109.33 and extend to 110.50 after breaching the previous level.

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

Expected trend for today: Bullish