JPYUSD Analysis 27.11.2019

The US dollar fluctuated in a narrow uptrend range during the Asian session to witness the bounce for the fifth consecutive session from the lowest since November 14 against the Japanese yen amid the lack of economic data from the Japanese economy, the third largest economy in the world and on the eve of developments and upcoming economic data Wednesday by the largest US economy in the world.

At 06:02 AM GMT, the USDJPY rose 0.09% to 109.15 levels from the opening levels of 109.04 after the pair reached its highest level during the session at 109.18, while the lowest level at 109.02.

Investors are currently awaiting the US economy to reveal the second reading of GDP, which may reflect the expansion of the largest economy in the world 1.9% in the third quarter, little change from the previous preliminary reading, and the second reading of GDP measured in prices may show the stability of growth at 1.7 % Was also unchanged from the initial reading of the previous quarter.

This comes in conjunction with the release of the Durable Goods Orders reading, which accounts for about half of consumer spending, which accounts for more than two-thirds of US GDP, which may reflect a contraction in the decline to 0.5% from 1.2% in September, while the core reading may appear. The index is up 0.2% vs. 0.4% in September.

This is also in conjunction with the release of the index of claims for the last week on the 23rd of this month, which may reflect a decrease of 4 thousand applications to 223 thousand applications compared to 227 thousand applications in the previous weekly reading, as may read the index of claims applications for investors for the past week on 16 This month, a decline of 5 thousand applications to 1,690 thousand applications against 1,695 thousand applications.

The data released by the Chicago Purchasing Managers' Index (PMI), which may reflect a contraction in the contraction to 47.2 from 43.2 in October, before the release of the US housing market data with the release of the reading. Existing home sales may show slower growth to 0.2% versus 1.5% in September.

This comes in conjunction with the release of personal spending and income data which may reflect the acceleration of personal spending growth to 0.3% vs. 0.2% in September, and the stabilization of personal income growth at 0.3% unchanged from the previous reading in September Core CPE reading could show a 0.2% growth versus steady zero levels in September.

Later in the day, investors are also awaiting the release of the Beige Book report, which is important two weeks before the FOMC meeting, which is one of the pillars on which the Fed's monetary policy makers base their decisions and directions to support and stimulate the US economy. With markets currently pricing for opportunities to resolve trade disputes between Washington and Beijing

Technical Analysis

USDJPY is showing new positive trades to approach 109.33, and is getting positive support from SMA 50 and Stochastic, waiting for a breach of the mentioned level to confirm the extension of the bullish wave towards 110.50.

Therefore, we will maintain our bullish outlook for the coming period, keeping in mind that a break of 108.40 will stop the expected rally and press the price to turn lower.

Expected trading range for today is between 108.60 support and 109.80 resistance

Expected trend for today: Bullish