USDJPY analysis 11.12.1029

The US dollar fluctuated in a narrow range tilted to the upside during the Asian session against the Japanese yen following the developments and economic data that it followed from the Japanese economy and on the cusp of developments and economic data expected on Wednesday by the US economy, which includes the decisions and directions of monetary policy makers at the Federal Reserve and the press conference of the governor Federal Reserve Jerome Powell in Washington.

At 05:51 am GMT, the US dollar pair rose against the Japanese yen by 0.03% to 108.75 levels compared to the opening levels at 108.72, after the pair achieved its highest during the trading session at 108.85, while achieving the lowest at 108.67.

We have followed about the Japanese economy, the third largest industrialized country globally, the Bank of Japan revealed the manufacturing business statistics, which showed that the contraction widened to 7.8 compared to 0.2 in the past third quarter, contrary to expectations that indicated a expansion of 0.2 value, while reading the business sector statistics for the whole The industry contracted by a value of 6.2 compared to a expansion of 1.1 in the third quarter.

This came with the disclosure of inflation data with the release of the producer price index, which is an initial indication of inflationary pressures, which showed a slowdown in the pace of growth to 0.2% compared to 1.1% last October, outperforming expectations that indicated a slowdown in the pace of growth to 0.1%, while The annual reading of the same index showed a 0.1% growth versus a 0.4% contraction, also outperforming expectations for stability at zero levels.

On the other hand, investors are anticipating the US economy to disclose inflation data with the release of the consumer price index, which may reflect a slowdown in growth to 0.2% compared to 0.4% in October, while a substantial reading of the same indicator may show stability in growth of 0.2%, While the annual reading of the index may show accelerated growth to 2.0% compared to 1.8%, the fundamental annual reading of the index may reflect the stability of growth at 2.3%.

This comes in conjunction with the activities of the Federal Open Market Committee meeting held in Washington, through which it is expected to remain on the short-term benchmark interest rates for the second consecutive meeting at between 1.75% and 2.00%, while revealing the expectations of the members of the committee for the rates of growth, inflation and unemployment. In addition to the future of interest rates for the next three years.

Up to the press conference that Fed Governor Jerome Powell will hold about half an hour after the FOMC meeting ends to comment on the Fed’s policy makers ’decisions that have been witnessing widespread criticism by US President Donald Trump who is asking the Federal Reserve and his Governor Powell to move forward in Reducing interest on federal funds "to zero or less".

Technical analysis

The dollar versus yen pair shows a slight bullish tendency to test SMA 50, noting that the stochastic continues to move at the overbought areas, to form a negative stimulus that we expect to contribute to pushing the price down.

Therefore, we will continue to favor the bearish trend over an intraday and short term unless the price rushes to breach 109.33 level and stability above it, noting that breaching 108.40 is required to reinforce chances of heading towards our next main target located at 107.45.

The expected trading range for today is between 107.80 support and 109.33 resistance.

Expected trend for today: bearish.