USDJPY analysis 05.12.2019

The US dollar fluctuated in a narrow range slanting back down during the Asian session to witness its bounce for the third session in four sessions from its highest since May 30, when it tested its highest since 23 of the same month against the Japanese yen amid the scarcity of economic data by the Japanese economy and on The economic developments and data expected on Thursday by the US economy, which includes the second half of the testimony of the Deputy Governor of the Federal Reserve and member of the Federal Open Market Committee Randall Quarles before the Congress in Washington.

At exactly 06:03 AM GMT, the US dollar pair fell against the Japanese yen by 0.06% to 108.79 levels compared to the opening levels at 108.86 after the pair achieved its lowest during the trading session at 108.78, while achieving the highest at 108.93.

Investors are currently looking for the US economy to issue a reading of the subsidy requests index for the last week at the end of last month, which may reflect an increase by two thousand requests to 215 thousand requests compared to 213 thousand requests in the previous weekly reading, as may read the index of subsidy requests investors for the past week at 23 From last month, an increase of 20 thousand requests to 1,660 thousand requests compared to 1,640 thousand requests.

This comes in conjunction with the release of the Trade Balance Index reading, which may reflect a narrowing of the deficit to $ 48.7 billion compared to $ 52.5 billion in September, and before the disclosure of the factory orders reading, which may show a 0.3% rise compared to a 0.6% decline in September, Up to the Federal Reserve Deputy Governor and member of the Federal Commission Randall Quarles testified about supervision and regulation before the Senate Banking Committee.

Technical analysis

The dollar against the yen touched the 108.40 level yesterday and bounced up to test the moving average 50, noting that the stochastic indicator has lost its positive intention to enter the overbought areas, which supports the chances of bouncing down to resume negative trades, and the price needs to break the mentioned level to confirm the downside extension to reach 107.45.

Therefore, we will maintain our downside expectations unless we witness a clear breach of 109.33 and steady daily closing above it.

The expected trading range for today is between 108.00 support and 109.33 resistance.

Expected trend for today: bearish.