USDJPY analysis 18.12.2019

The US dollar fluctuated in a narrow range, which is slipping toward decline 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 amid the scarcity of economic data on Wednesday by the US economy, the largest economy in the world, and looking forward to the speech of the members of the Federal Committee For the open market.

At exactly 05:51 am GMT, the US dollar pair fell against the Japanese yen by 0.02% to 109.46 levels compared to the opening levels at 109.48 after the pair achieved its lowest during the trading session at 109.41, while achieving the highest at 109.57.

We have followed on from the Japanese economy the release of the Trade Balance Index reading, which showed a deficit of 82.1 billion yen against a surplus of 15.7 billion yen last October, contrary to expectations that indicated a deficit of 356 billion yen, while the seasonally adjusted reading of the index showed Similarly, the deficit widened to 61 billion yen, compared to 48 billion yen in October, worse than expectations that the deficit widened to 56 billion yen.

This came with the annual reading of exports showing that the decline declined to 7.9% compared to 9.2% in the previous annual reading for the month of October, surpassing expectations that indicated a decrease in the decline to 8.9%, while the annual reading of imports showed that the decline expanded to 15.7% compared to 14.8% in The previous annual reading for October, contrary to expectations that the decline will decrease to 12.8%.

On the other hand, investors are looking forward to the participation of a member of the Federal Open Market Committee and Deputy Governor of the Federal Reserve Bank of Elle Brenard in a panel discussion entitled "Politics, Technology and Globalization" within the European Central Bank seminar held in honor of Benoit Core in Frankfurt, before we witness a talk Another member of the Federal Reserve and Chicago Fed President Charles Evans at the Economic Club Indiana lunch.

This comes hours after US President Donald Trump called on members of the Federal Committee to cut interest rates further after reducing this year three times by 25 basis points to between 1.50% and 1.75%, and this came through his tweet to him, which he touched upon The US dollar’s ​​position remains strong against other currencies, and almost no inflation, so it is time for further rate cuts to increase exports.

Technical analysis

The dollar versus the yen shows sideways trading and is close to testing the 109.33 level now, in conjunction with the stochastic reaching the oversold areas in the sale, which supports the chances of resuming the expected bullish direction for the coming period, which mainly targets 110.50 areas, taking note that a break of 109.33 will put the price Under negative pressure, it aims at testing the 108.40 level initially.

The expected trading range for today is between 109.00 support and 110.00 resistance.

Expected trend for today: bullish.