USDJPY analysis 16.12.2019

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 were followed by the Japanese economy, the third largest economy in the world and on the cusp of developments and economic data expected on Monday by the US economy, the largest economy in the world.

At exactly 05:55 AM GMT, the US dollar pair rose against the Japanese yen by 0.01% to 109.39 levels compared to the opening levels at 109.37 after the pair achieved its highest during the trading session at 109.45, while achieving the lowest at 109.27.

We have followed the issuance of the initial reading of the manufacturing PMI by Markit of Japan, the third largest industrialized country in the world, which showed that the deflation widened to 48.8 compared to 48.9 last November, contrary to expectations that the deflation will expand to 48.7, and that came before we witnessed The industrial reading of the Teratari index fell 4.6% against a rise of 2.3% last September, worse than the expectations that indicated a decline of 3.5%.

On the other hand, investors are expected by the US economy to disclose data on the industrial sector with the release of the New York Industrial Index reading, which may reflect a widening to 5.1 compared to 2.9 in November, and that comes before we witness the release of the initial reading of the Manufacturing PMI Markit for the states United which may reflect the stability of the expansion at 52.6, little changed from November.

This comes in conjunction with the disclosure of the primary reading of the Markit PMI for the United States, which may reflect a widening to 52.0 compared to 51.6 in the previous reading in November, leading to the disclosure of housing market data with the release of the housing index reading by the National Association For home builders, which may reflect stability at 70 in November.

Technical analysis

The dollar versus the yen tested the support floor that formed above 109.33 level after penetrating previously and maintains its stability above it, noting that the stochastic indicator is gaining positive momentum significantly, to support the chances of resuming the expected bullish trend over the intraday basis, waiting for the visit of the 110.50 level as the next main station.

Thus, we will continue to favor the bullish trend provided that the price maintains its stability above 109.33.

The expected trading range for today is between 109.00 support and 110.20 resistance.

Expected trend for today: bullish.