USDJPY analysis 24.01.2020

The fluctuation of the US dollar in a narrow range tilted to the upside during the Asian session, to witness its bounce for the second session from the lowest since January 9 against the Japanese yen, following 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 US economy And in the shadows of the World Economic Forum 2020 events.

At 05:55 am GMT, the US dollar pair rose against the Japanese yen by 0.04% to 109.53 levels compared to the opening levels at 109.49, after achieving its highest level during the trading session at 109.58, while achieving the lowest at 109.44.

We have followed the Japanese economy on the disclosure of inflation data with the release of the annual reading of the national consumer price index, which showed an acceleration in the pace of growth to 0.8% compared to 0.5% in the last November, surpassing expectations that indicated the acceleration of growth to 0.7%, as indicated Annual reading of the same index, excluding fresh food, accelerated growth to 0.7%, in line with expectations, compared to 0.5%.

As we watched, the annual reading of the Consumer Price Index excluding energy and fresh food showed growth accelerating to 0.9%, in line with expectations, compared to 0.8% in November, and that came before we witnessed the release of the Bank of Japan meeting minutes held on January 21. By which monetary policy makers of the Japanese central bank decided to keep interest rates negative at 0.10%.

Up to the disclosure of the initial reading of the manufacturing PMI by Markit on Japan, which showed the contraction shrank to 49.3 compared to 48.4 last December, outperforming expectations that the contraction will shrink to 48.9, and attention is now focused on the results of a conservative talk Bank of Japan Haruhiko Kuroda at a panel discussion titled "Global Economic Prospects" at the World Economic Forum Davos.

Markets are also looking for what will come out of US Treasury Secretary Stephen Manuchin's speech in the same panel discussion before we witness the disclosure of the initial reading of the Markit Manufacturing and Service PMI for the United States, which may reflect the stability of the expansion of the industrial sector at 52.4, little changed from December. , And the service sector expanded to 52.9, compared to 52.8 in December.

Technical analysis

The dollar versus yen pair tested the 109.33 level and bounced up from there, to keep the upside current and effective until now, supported by the positive signal provided by the stochastic indicator, noting that our next main target is at 110.50.

We remind that breaking 109.33 will stop the expected rise and press the price to visit the 108.40 areas before any new positive attempt.

The expected trading range for today is between 109.00 support and 110.40 resistance.

Expected trend for today: bullish.