USDJPY analysis 17.01.2020

The fluctuation of the US dollar in a narrow range tilted to the upside during the Asian session to witness the highest since May 23 against the Japanese yen after the developments and economic data that were reported by the Japanese economy and on the cusp of developments and economic data expected on Friday by the American economy, which includes members ’talk The Federal Open Market Committee.

At exactly 06:07 AM GMT, the US dollar pair rose against the Japanese yen by 0.05% to 110.21 levels compared to the opening levels at 110.16, after the pair achieved its eight-month high at 110.29, while achieving the lowest during the trading session at 110.14 .

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 of America and China, the disclosure of industrial sector data with the release of the Terratari industrial index, which showed a rise of 1.3% compared to a decline of 5.2% last October, Thus, the current reading is better than expected, which indicated an increase of 1.0%.

On the other hand, investors are currently awaiting the release of housing market data by the US economy, with the release of each of the start-up homes and the building permit, and amid expectations that building permits will decline by 3.8% to about 1,405 thousand permits, compared to a 5.0% increase at 1,461 thousand permits in November. November, while start-up homes may reflect an increase of 2.0% to 1,340,000 homes compared to a rise of 3.8% at 1,314,000 homes.

This comes before we witness the speech of a member of the Federal Open Market Committee and Chairman of the Federal Reserve Bank of Philadelphia Patrick Harker about the economic expectations at the Economic Leadership Forum for New Jersey bankers, before the disclosure of industrial sector data for the largest industrial country in the world with the release of the industrial production index, which may reflect stability It is at zero levels, against a 0.1% rise in November.

In the same vein, the reading of the energy utilization index may show a decrease to 77.0% compared to 77.3% in November, leading to the disclosure of the preliminary reading of the University of Michigan index of consumer confidence for January, which may show stability of expansion at a value of 99.3 below Little change from what it was in the previous reading of December.

This comes in conjunction with the release of the employment opportunities and job turnover reading, which may reflect a decrease to 7.24 million compared to 7.27 million last October, before we witnessed another member of the Federal Committee, Deputy Governor of the Federal Reserve, Randall Quarles, about banking supervision. At the annual meeting of the Banking Law Commission of the American Bar Association in Washington.

Technical analysis

The dollar versus yen pair shows new positive trades to approach our awaited target at 110.50, reinforcing expectations for the continuation of the bullish trend, which is organized within the ascending channel shown in the image, noting that exceeding the mentioned level will extend the upside wave to reach 111.50 as the next main target.

SMA 50 supports the expected rise, which will remain valid unless 109.33 level is broken and stability below it.

The expected trading range for today is between 109.50 support and 111.00 resistance.

Expected trend for today: bullish.