USDJPY analysis 23.12.2019

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 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 0.03% to 109.43 levels compared to the opening levels at 109.40 after the pair achieved its highest during the trading session at 109.54, while it achieved the lowest at 109.38, knowing that the pair The trading session started on a falling price gap after it concluded the trading last week at 109.44 levels.

We have followed about the Japanese economy, the third largest economy in the world and the third largest industrialized country globally after both the United States and China, the disclosure of industrial sector data with the release of the overall industrial activities index, which showed a decline of 4.3% in line with expectations against a rise of 1.9%, which was modified from 1.5% increase in the previous reading last September.

On the other hand, investors are currently awaiting by the US economy the disclosure of the Durable Goods Orders Index, which represents about half of consumer spending, which represents more than two-thirds of GDP in the United States, and that may reflect a slowdown in the pace of growth to 0.2% compared to 0.5% in October. Last October, while the substantial reading of the same indicator may show that the pace of growth accelerated to 1.5% compared to 0.5% in October.

This comes before the release of the US housing market data with the release of the New Home Sales Index, which may indicate a 1.0% decline to 730 thousand compared to a 0.7% increase at 733 thousand in the previous reading of October. Otherwise, the markets are looking to reveal the US Treasury Its semi-annual report on economic policies and the international exchange rate.

We would like to point out, because China announced at the beginning of this week that it will reduce customs duties on its imports for more than 850 products as of January 1, including some meat in addition to IT products starting early next July, and this came after Last Friday, US President Donald Trump said that he had a "very good conversation" with his Chinese counterpart Xi Jinping.

It is noteworthy that the American President noted Friday, through his tweet to him, that China had started "big" purchases of American agricultural products, adding that an arrangement is underway to sign a formal agreement regarding the so-called first stage of the trade agreement reached in the middle of this month, which is expected to It will be signed early next year 2020, and Trump said on Saturday that the two countries will sign "very soon" the deal.

Technical analysis

The dollar against the yen continues to fluctuate near 109.33 and maintains its stability above it, which keeps our bullish expectations effective for the coming period, as the price gets continuous positive support from the EMA50, awaiting the direction towards 110.50 which represents our next main goal, while recalling the importance of stability Above 109.33 to continue the expected rise.

The expected trading range for today is between 108.80 support and 110.00 resistance.

Expected trend for today: bullish.