USDJPY analysis 20.01.2020

The US dollar fluctuated in a narrow range slanting upward during the Asian session to witness its stability near its top since the second half of last May against the Japanese yen after the developments and economic data that it adopted earlier this week from the Japanese economy amid the scarcity of economic data today Monday before American economy due to Martin Luther King's Day holiday in the United States.

At exactly 6:11 am GMT, the US dollar pair rose against the Japanese yen by 0.11% to 110.18 levels compared to the opening levels at 110.06, after achieving its highest level during the trading session at 110.22, while achieving the lowest at 110.05, knowing that The pair closed last week's trading at 110.14 levels before starting this week's trades on a falling price gap.

We have followed about the Japanese economy, the third largest economy in the world and the third largest industrialized country in the world, the disclosure of industrial sector data with the release of the final reading of industrial production, which showed a widening decline to 1.0% compared to the previous initial reading for the month of November and expectations that indicated the stability of the decline at 0.9%, compared to a decline of 4.5% last October.

Technical analysis

The dollar versus the yen trades around 110.20, and the price gets continuous positive support from the EMA50, while the stochastic starts to cross positively now.

Consequently, we believe that opportunities exist to resume the bullish bias targeting initially testing the 110.50 level, noting that breaching this level will push the price to 111.50 as a next station, while holding above 109.33 is an important condition for the continuation of the suggested bullish wave.

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

Expected trend for today: bullish.