USDJPY 14.02.2020

The fluctuation of the US dollar in a narrow range slanted toward decline during the Asian session to witness its bounce for the third session from the top since January 21 against the Japanese yen after the developments and economic data that it had reported on the Japanese economy and on the cusp of developments and economic data expected Friday by the economy The American is the largest economy in the world.

At 05:59 am GMT, the US dollar pair fell against the Japanese yen by 0.01% to 109.81 levels compared to the opening levels at 109.82, after the pair achieved its lowest level during the trading session at 109.73, while it achieved the highest at 109.91.

On the Japanese economy, we have followed the third largest economy in the world and the third largest industrialized country globally, the disclosure of industrial sector data with the release of the December industrial index of Teratari, which showed a 0.2% decline compared to a 1.4% increase, which was modified from a 1.3% growth in the previous reading For the month of last November, contrary to expectations that a slowdown in the pace to 0.2%.

On the other hand, investors are looking to the US economy to reveal the retail sales reading, which represents about half of consumer spending, which represents more than two-thirds of the gross domestic product of the United States, and that may reflect the stability of growth at 0.3%, little changed from the previous reading of the month December, while a substantial reading of the same indicator may show a slowdown in growth to 0.3% versus 0.7% in December.

This comes in conjunction with the release of the import price index, which may explain a 0.2% decline against a rise of 0.3% in December, while the annual reading of the same indicator may show a slowdown in the pace of growth to 0.1% versus 0.5%, before we witness the disclosure of industrial sector data For the largest industrialized country in the world with the release of the industrial production index, which may reflect a decline in the decline to 0.2% compared to 0.3% in December.

In the same context, the reading of the energy utilization index may show a decrease to 76.9% compared to 77.0% in December, before we witness the disclosure of the preliminary reading of the University of Michigan's index of consumer confidence, which may show a widening of the value to 99.5 compared to 99.8 in December. Last January, coinciding with the release of the business inventories reading, which may explain an increase of 0.1% compared to a decline of 0.2% last November.

To the talk of Federal Open Market Committee member and President of the Federal Reserve Cleveland Bank Loretta Mester about payment updates at the University of South Florida in Sarasota, and this comes hours after the activities of the semi-annual certification of the Governor of the Federal Reserve Jerome Powell about monetary policy before each of the Financial Services Committee In the House of Representatives last Tuesday and the Banking Committee in the Senate last Wednesday.

Technical analysis

The dollar versus yen is showing sideways and narrow range trading around the EMA50, noting that the stochastic is providing a positive crossover now, waiting for the price to stimulate the resumption of the expected bullish direction for the upcoming period, which targets the 110.50 level as a next station.

Therefore, we will maintain our positive expectations provided that the price maintains its stability above 109.33.

The expected trading range for today is between 109.30 support and 110.50 resistance.

Expected trend for today: bullish.