USDJPY analysis 04.12.2019

The dollar fluctuated in a narrow range tilted to the upside during the Asian session to witness its bounce for the third consecutive session from its highest since May 30, when it tested the highest for it since 23 of the same month against the Japanese yen amid the scarcity of economic data by the Japanese economy and on the cusp of Economic developments and data expected today, Wednesday, by the US economy, the largest economy in the world.

At exactly 06:12 am GMT, the US dollar pair fell against the Japanese yen by 0.04% to 108.59 levels compared to the opening levels at 108.63 after the pair achieved its lowest during the trading session at 108.49, while achieving the highest at 108.68.

Investors are currently looking for the US economy to disclose preliminary data for the labor market with the release of the index of change in private sector jobs, which may reflect the acceleration of the pace of job creation to 137 thousand added jobs compared to 125 thousand added jobs in October, hours before the disclosure On the monthly report of jobs except agricultural and unemployment rates in addition to the hourly rate for the month of November.

This comes before we witness the issuance of the final reading of the service provision institute index by Marquette about the United States, which may reflect the stability of the expansion at 51.6, little changed from the initial reading for November and 50.6 in October, and we would like to point out that the service provision Its importance is that the service sector in the United States accounts for more than two-thirds of GDP.

Up to the disclosure of the Institute of Service Supply index reading, which may show a shrinkage of expansion to 54.5 compared to 54.7 in October, and this comes before we witness the Deputy Governor of the Federal Reserve and member of the Federal Open Market Committee Randall Quarles testifying before the Financial Services Committee in the Council Representatives in the capital of the United States of America Washington.

Technical analysis

The dollar against the yen presented additional negative trades yesterday to reach the outskirts of the awaited target at 108.40, and the price falls under the negative pressure formed by the EMA50, to support the chances of breaking the aforementioned level and opening the way for the continuation of the decline during the upcoming period, where the next target is located at 107.45.

From here, we expect the bearish trend to continue dominating the upcoming trading unless the price rushes to breach the 109.33 level and hold above it.

The expected trading range for today is between 107.80 support and 109.00 resistance.

Expected trend for today: bearish.