JPYUSD Analysis 29.11.2019

The US dollar fluctuated in a narrow range, tilted lower during the Asian session to witness the rebound for the third session from its highest since May 31, while still making weekly and monthly gains against the Japanese yen following the developments and economic data that followed on Friday on the Japanese economy and amid the lack of data Economic by the US economy after hours of Thanksgiving holidays in the United States.

At 06:29 am GMT, the dollar against the Japanese yen fell by 0.02% to 109.49 levels compared to the opening levels at 109.51 after the pair reached its lowest level during the session at 109.45, while the highest level at 109.60.

The Japanese economy followed the release of inflation data with the release of the Tokyo Consumer Price Index which showed growth accelerated to 0.8% versus 0.4% in the prior year of October, beating expectations for an acceleration of 0.6%. The core annual reading of the same index, which excludes fresh food, showed growth accelerated to 0.6% in line with expectations against 0.5%.

In the same context, the core annual reading of the Tokyo consumer price index excluding fresh food and energy stabilized growth at 0.7%, little changed from the previous annual reading for the month of October, in line with expectations, coinciding with the release of the unemployment rate index, which It showed stability at 2.4%, little changed from the previous reading last September, also in line with expectations.

We also followed the Japanese economy, the third largest economy in the world and the third largest industrial country in the world the preliminary reading of industrial production, which showed a decline of 4.2% versus 1.7% in September, worse than expectations for a decline of 2.0%, and in the same context, the reading showed The index is down 7.4% from 1.3% in the prior September reading, worse than expectations for a 5.3% decline.

The Consumer Confidence reading came in at 38.7 vs. 36.2 in October, beating expectations of 37.0. This came in conjunction with the release of the housing market data with the release of the annual Housing Starts Index which showed a broader decline. 7.4% versus 4.9% in the prior yearly reading last September, beating expectations that the decline would widen to 7.5%.

Yesterday, Prime Minister Shinzo Abe said Japan is in contact with the United States and South Korea to discuss the situation in North Korea, noting that the missile launches are a major threat to Japan and the international community. It was reported that North Korea fired two ballistic missiles, while there was no indication that the missiles hit Japan.

Yesterday, Bank of Japan Governor Hariko Kuroda said that policy integration is the ideal way to deal with the economy, noting that coordination between government and BOJ policies is important and necessary, with limited space for fiscal spending in Japan. Low interest makes fiscal policies more effective, he said, adding that monetary policy is geared towards achieving its goals.

Technical Analysis

USDJPY maintains stability above 109.33, and receives positive support from SMA 50, which keeps our bullish outlook intact for the upcoming period, targeting mainly 110.50 areas, while recalling the importance of stability above 109.33 for the continuation of the expected rally.

Expected trading range for today is between 108.80 support and 110.20 resistance.

Expected trend for today: Bullish.