USDJPY 21.02.2020

The fluctuation of the US dollar in a narrow range slanted toward decline during the Asian session to witness its bounce for the second session from the top since the beginning of the 25th of last April against the Japanese yen, following the developments and economic data that it followed from the Japanese economy, the third largest economy in the world and on the threshold of developments and economic data expected Today, Friday, by the US economy, the largest economy in the world, which includes the speech of members of the Federal Open Market Committee.

At 05:59 am GMT, the US dollar pair fell against the Japanese yen by 0.13% to 111.95 levels compared to the opening levels at 112.10, after the pair achieved its lowest level during the trading session at 111.92, while achieving the highest at 112.19.

We have followed the disclosure of the initial reading of the industrial purchasing managers' index by Markit on Japan, which showed the contraction widened to 47.6 compared to 48.8 in January, before we witnessed the Japanese economy, the third largest industrialized country in the world, issued a reading of the index of all industrial activities, which Stability at zero levels versus a 0.9% rise in November showed worse than expectations for slowing growth to 0.3%.

On the other hand, it is expected that the Federal Open Market Committee member and Dallas Fed President Robert Kaplan will deliver the opening speech at a conference hosted by the Dallas Fed, before we witness the disclosure of the initial reading of the Markit manufacturing PMI for the United States, which may reflect the stability of The breadth was at 53.3, little changed from the previous reading in January.

This also comes in conjunction with the disclosure of the initial reading of the Markit Services PMI for America, which may show a shrinkage in value to 51.5 compared to 51.9 in the previous reading in January, and before we witness the disclosure of housing market data with the release of the Home Sales Index The list, which could show a decline of 1.7% to 5.46 million homes, compared to a rise of 3.6% at 5.54 million homes in December.

Up to the participation of two other members of the Federal Committee in the US Monetary Policy Forum 2020 in New York, each of the Deputy Governor of the Federal Reserve, Lyle Brenard, who is scheduled to participate in a seminar on monetary policy for the next recession, and that we are witnessing the participation of another Deputy Governor of the Federal Reserve, who is Richard Clarda is in another panel discussion entitled "Hall of Mirrors: Feedback between Monetary Policy and Financial Markets".

Technical analysis

The dollar against the yen continues its bullish rally to breach the 111.50 level and settles around the 112.00 barrier, which supports expectations of achieving more gains in the short and intraday basis, and the path is open for visiting the bullish channel resistance that appears in the picture at 112.70.

Therefore, we will continue to favor the bullish trend for the upcoming period, taking into consideration that the continuation of the expected rise requires stability above 111.30.

The expected trading range for today is between 111.50 support and 112.70 resistance.

Expected trend for today: bullish.