JPY Analysis 21.11.2019

The US dollar fluctuated in a narrow range, tilted lower during the Asian session to witness the bounce for the eighth session in eleven sessions from its highest since late May last 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 from Before the US economy.

At 06:00 AM GMT, the USDJPY fell 0.04% to 108.57 levels compared to the opening levels of 108.61, the pair's highest level during the trading session, while the pair achieved the lowest at 108.28.

The Japanese economy, the third largest in the world and the third largest industrial country in the world, followed the release of the industrial sector data with the release of the overall manufacturing activity index which showed a 1.5% rise in line with expectations against the stability at zero levels last August. Yesterday we followed the Japanese House of Representatives passing the trade agreement with the United States.

In the same context, the Japan-US trade agreement, which follows the expansion of tariff reductions on goods that include US agricultural goods and Japanese rates, is expected to be voted on by the House of Councilors. By next January as the Japanese foreign minister noted earlier last month.

On the other hand, investors are awaiting the US economy for the release of the index of claims for the last week on the 16th of this month, which may reflect a decline of 10 thousand applications to 215 thousand applications compared to 225 thousand applications in the previous weekly reading, while reading may show Investors for the week ending 9th of this month stabilized at 1,683 thousand applications.

This comes in conjunction with the disclosure by the largest industrial country in the world for the reading of the Philadelphia industrial index, which may reflect an expansion to 7.0 from 5.6 in October, before we see the release of housing market data with the release of the existing home sales index. That could show a rise of 2.1% to 5.49 million, compared to a decline of 2.2% at 5.2.2 million in September.

Markets from the world's largest economy are also looking to reveal the leading indicators that may show a 0.1% decline in October, following hours of the FOMC minutes from October 29-30. October, in which interest rates were cut for the third time in a row by 25 basis points to between 1.50% and 1.75%.

Technical Analysis

USD / JPY is hovering around the 108.40 level, and made an attempt to break it yesterday but managed to hold above it, to keep the upside trend likely in the coming sessions, and the price needs to overcome the 50 SMA to release the negative pressure and rush towards our first positive target at 109.33.

Stability above 108.40 is important for the continuation of the expected bullish trend, noting that exceeding the mentioned target will extend the bullish wave to reach 110.50 as the next major stop.

Expected trading range for today is between 108.00 support and 109.30 resistance.

Expected trend for today: Bullish.