USDJPY analysis 20.02.2020

The fluctuation of the US dollar in a narrow range slanting upward during the Asian session, its stability near its highest level since the beginning of last May against the Japanese yen amid the scarcity of economic data by the Japanese economy and on the cusp of developments and economic data expected Thursday by the US economy, the largest economy in the world .

At exactly 05:53 AM GMT, the US dollar pair rose against the Japanese yen by 0.03% to 111.40 levels compared to the opening levels at 111.37, after the pair achieved its highest level during the trading session at 111.49, while achieving the lowest at 111.11.

Investors are currently awaiting by the US economy the disclosure of industrial sector data with the release of the Philadelphia Industrial Index reading, which may reflect a shrinkage in breadth to 10.1 compared to 17.0 in January, and this comes in conjunction with the release of the index of subsidy requests for the past week in February 15th, which may reflect a rise of 5 thousand requests to 210 thousand applications compared to 205 thousand requests in the previous weekly reading.

This also comes in conjunction with the issuance of the reading of the continuous benefit requests index for the past week on the eighth of this week, which may reflect an increase of 19 thousand applications to 1,717 thousand applications compared to 1,698 thousand requests in the previous weekly reading, up to the disclosure of reading the leading indicators that may appear Up 0.4%, compared to a decline of 0.3% in December.

This comes hours after the minutes of the Federal Open Market Committee meeting held on January 28-29, during which members of the committee approved the maintenance of short-term benchmark interest rates between 1.50% and 1.75% for the third meeting, respectively. The minutes mentioned that the current monetary policy is appropriate and will remain in place for some time, indicating that the interest on federal funds remains unchanged during the coming period.

Technical analysis

The dollar pair against the yen surged strongly yesterday, exceeding our first target of 110.50 and achieving the second at 111.50, opening the way for a continuation of the rise in the short term, regular inside the bullish channel that appears in the picture, waiting for the visit of the previously recorded summit at 112.39 as the next stop.

Thus, the bullish trend scenario will remain effective during the upcoming sessions provided that the price maintains its stability above 110.80.

The expected trading range for today is between 110.80 support and 112.30 resistance.

Expected trend for today: bullish.