USDJPY analysis 27.12.2019

The US dollar fluctuated in a narrow range slanting back down during the Asian session to witness its bounce for the second session from the top since December 19, while it is still in the process of its third weekly gain against the Japanese yen after the developments and economic data that it followed from the Japanese economy, the third largest economy In the world, amid the scarcity of economic data today, Friday, by the US economy, the largest economy in the world.

At exactly 05:51 am GMT, the US dollar pair declined against the Japanese yen by 0.13% to 109.49 levels compared to the opening levels at 109.63, which is the highest level for the husband during the trading session, while the pair achieved the lowest during the trading session at 109.43.

We have followed on from the Japanese economy to disclose inflation data with the release of the annual reading of the Tokyo CPI, which showed accelerated growth to 0.9%, in line with expectations, compared to 0.8% in the previous annual reading of last November, as indicated by the fundamental annual reading of the same index, which Excluding fresh food, the growth accelerated to 0.8% compared to the previous yearly reading and expectations at 0.6%.

In the same context, the core annual reading of the Tokyo consumer price index excluding fresh food and energy showed that growth accelerated to 0.9% compared to the previous annual reading for November and expectations at 0.7%, and this came in conjunction with the release of the unemployment rate index, which indicated a decline to 2.2 % Compared to the previous reading of last October and expectations at 2.4%.

This came before we witnessed the Bank of Japan's unveiling of the summary report of opinions and the release of the seasonally adjusted reading of the retail sales index, which showed a rise of 4.5% compared to a decline of 14.2% in the previous reading for the month of October, without expectations that indicated an increase of 5.0%, while the annual reading of the index indicated The same decline declined to 2.1% compared to 7.0% in the previous annual reading, worse than expectations that indicated the decline to decline to 1.7%.

We also followed about the second largest industrialized country in Asia and the third largest industrialized country in the world, revealing the initial reading of industrial production, which showed a decline in the decline to 0.9% compared to 4.5% in October, exceeding expectations that indicated a decrease in the decline to 1.1%, while it clarified The annualized reading of the same index expanded to 8.1%, in line with expectations, compared to 7.7% in the previous annual reading.

Technical analysis

The dollar versus yen pair shows some slight bearish tendency now to approach the test of 109.33 level, and as long as the price is above this level, our expectations for the upward trend will remain, supported by the moving average 50, waiting for the visit of the 110.50 level as the next main station, noting that the break of 109.33 will stop The expected rise and presses the price to fall again.

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

Expected trend for today: bullish.