USDJPY analysis 18.02.2020

The fluctuation of the US dollar in a narrow range slanted toward decline during the Asian session, as we witnessed its bounce for the third session in five sessions from its highest since January 21 against the Japanese yen amid the scarcity of economic data by the Japanese economy and on the cusp of developments and economic data expected on Tuesday by The American Economy, which includes a speech by a member of the Federal Open Market Committee and President of the Minneapolis Federal Reserve Bank on the proposal to amend education in Minnesota at the Indian Affairs Council in Minnesota in St. Paul.

At exactly 05:55 AM GMT, the US dollar pair fell against the Japanese yen by 0.11% to 109.76 levels compared to the opening levels at 109.88, after the pair achieved its lowest level during the trading session at 109.66, while achieving the highest at 109.89.

We have followed this weekend, Bank of Japan Governor Haruhiko Kuroda expressed that the outbreak of the Corona virus will be one of the biggest challenges facing his country's economy, which would increase uncertainty, with his assertion yesterday that the Japanese central bank will not hesitate to adopt more stimulus if What is needed, and these statements came in the wake of the report that reported the first death from coronavirus and that there are more than 500 cases of HIV in Japan.

It is noteworthy that the Japanese Minister of Economy, Yashutoshi Nishimura, noted last Friday that he expected his country's economy to slow during the last quarter of 2019 and to be less than it was in the last third quarter, while postponing the matter until the Japanese government increased taxes in addition to the typhoon that struck Japan recently, and touched on Also at the time, the recent outbreak of Corona virus in China would harm Japan's economic growth during the first quarter of this year.

On the other hand, investors are currently looking to the US economy for the disclosure of industrial sector data with the release of the New York Industrial Index reading, which may reflect an expansion of 5.1 to 4.8 in January, and that comes before we witness the disclosure of housing market data with the release of The housing index is read by the National Association of Home Builders which may reflect stability at $ 75 in January.

Technical analysis

The dollar versus yen pair shows a slight bearish tendency to press the MA 50, as the price is affected by the stochastic negativity, but since the price is above 109.33, our bullish expectations will remain valid for the upcoming period, which targets 110.50 initially.

It should be noted that a break of 109.33 will press the price to turn down and visit the 108.40 level as a first negative target.

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

Expected trend for today: bullish.