USDJPY analysis 15.01.2020

The fluctuation of the US dollar in a narrow range slanted toward decline during the Asian session, to witness its bounce for the second session from the top since May 23 against the Japanese yen, following the developments and economic data that it depended on the Japanese economy, which included the speech of the Japanese central bank governor Haruhiko Kuroda and on the cusp of developments The economic data expected on Wednesday by the US economy, which includes the speech of members of the Federal Committee for the Open Market and looking forward to the signing of both China and the United States on the first stage of the trade deal in Washington.

At 06:08 am GMT, the US dollar pair fell against the Japanese yen by 0.05% to 109.93 levels compared to the opening levels at 109.99, after achieving its lowest level during the trading session at 109.82, while achieving the highest at 110.01.

We have followed about the Japanese economy, the Bank of Japan revealed the annual reading of the M-2 bank lending index, which showed the stability of the pace of growth at 2.7% in line with expectations, little changed from what it was in the previous annual reading last November, and that came before To see Bank of Japan Governor Haruhiko Kuroda speak at the Japan Businessmen Association meeting in Tokyo.

The Governor of the Central Bank of Japan, Kuroda, just mentioned that the Bank of Japan will continue to expand its monetary base until the inflation rate in his country exceeds two percent, while expressing that the Japanese economy is expanding moderately and that the CPI is heading to about 0.5%, and this came before Disclosure of the annual preliminary reading of the machinery rate index for the past month, which reflected a decline in the decline to 33.6% compared to 37.9% in November.

On the other hand, investors are watching by the US economy to reveal the reading of the producer price index, which is an initial indicator of inflation, which may reflect 0.2% growth against stability at zero levels in November, while the fundamental reading of the same indicator may show 0.2% growth versus deflation 0.2%, in conjunction with the disclosure of industrial sector data, with the release of the New York Industrial Index reading, which may reflect a widening of 3.7 to 3.5 in December.

This comes before we witness the unveiling of the Beige Book report, the importance of which is that it is issued two weeks before the FOMC meeting, which is one of the pillars upon which the Federal Reserve monetary policy makers build their decisions and orientations to support and stimulate the American economy, knowing that the meeting The next FOMC will be held in Washington on January 28/29.

Technical analysis

The dollar versus yen pair shows slight negative trades to move around 109.90, noting that the stochastic indicator is getting rid of its negative momentum significantly, waiting for a positive stimulus that supports the chances of resuming the expected bullish direction over the intraday basis, whose next target is located at 110.50.

Therefore, the bullish trend will remain intact for the upcoming period unless we witness a clear breach of 109.33 level and stability with daily closing below it.

The expected trading range for today is between 109.33 support and 110.70 resistance.

Expected trend for today: bullish.