USDJPY analysis 22.01.2020

The US dollar fluctuated in a narrow range slanting up during the Asian session against the Japanese yen amid the scarcity of economic data by the Japanese economy and on the cusp of developments and economic data expected today by the US economy, the largest economy in the world, and amid the attention of investors to the activities of the World Economic Forum in Davos Switzerland.

At exactly 05:53 AM GMT, the US dollar pair rose against the Japanese yen by 0.15% to 110.03 levels compared to the opening levels at 109.87, after achieving its highest level during the trading session at 110.10, while achieving the lowest at 109.83.

Investors are currently looking for the US economy to disclose housing market data with the release of the house price index, which may show an acceleration of growth to 0.3% compared to 0.2% last October, before we witness the release of the existing home sales index, which may indicate an increase 1.5% to 5.43 million homes, compared to a decline of 1.7% at 5.35 million homes last November.

It is noteworthy that US President Donald Trump praised yesterday during the events of the World Economic Forum in Davos, the administration’s commercial deals and economic achievements for his country, noting the trade agreements concluded with China, Mexico and Canada, with his statement that the second stage of the trade agreement between Washington and Beijing will begin Soon, tariffs existed during the second-stage talks, adding that there was a good relationship with his Chinese counterpart.

In the same context, US President Trump warned that his administration will impose 25% customs duties on European cars in the event that a fair trade agreement has not been reached between Washington and Brussels, while threatening to impose 100% customs duties on French wine, and told him that France will stop imposing duties On the Internet companies at the moment and that he had no intention of meeting with the Ukrainian Prime Minister on the forum.

The remarks of the Republican President came during the Davos activities, which included his criticism of the Federal Reserve for being weakly reducing interest, in conjunction with the Republican majority of the Republican majority began the forty-fifth session of the US President's trial that aims to remove him from office following the accusations leveled against him by the House of Representatives Democratic majority, against the backdrop of his leaked phone call to the Ukrainian Prime Minister.

Other than that, the state of anxiety on the market increased the spread of the Corona virus globally following the assertion of the first American case of the pneumonia virus that has killed nine people in China and infected more than four hundred people there so far, in conjunction with the confirmation of health officials also in each of Thailand, South Korea and Japan as well as Taiwan have cases of the virus that can be transmitted from person to person.

Technical analysis

The dollar versus yen pair is opening today's trading with an upward slope after building on the EMA50 that provides good positive support for the price, noting that the stochastic is providing a positive crossover signal now, which enhances the chances of the continuation of the bullish bias today, pending testing the 110.50 level initially.

Therefore, we will continue to favor the bullish trend during the upcoming sessions, provided stability above 109.33, noting that exceeding the mentioned target will push the price to 111.50 as a next positive target.

The expected trading range for today is between 109.50 support and 110.80 resistance.

Expected trend for today: bullish.