USDJPY analysis 08.01.2020

The US dollar fell during the Asian session to witness its lowest level since the tenth of October 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 on Wednesday by the American economy and in the shadow of markets pricing the growing tensions in the Middle East between Tehran and Washington against the backdrop of the recent American air raid in the Iraqi capital, Baghdad, that resulted in the assassination of the commander of the Quds Force in the Iranian Revolutionary Guard, Qassem Soleimani.

At 06:07 am GMT, the US dollar pair fell against the Japanese yen by 0.13% to 108.30 levels compared to the opening levels at 108.44, after achieving a three-month low at 107.65, while achieving its highest during the trading session at 108.52.

On the Japanese economy, we followed the disclosure of the consumer confidence index reading, which showed an increase to 39.1 compared to 38.7 in November, without expectations at 39.6. Otherwise, we followed yesterday, Japanese Finance Minister Taro Aso expressed that the overview of the situation The third largest economy in the world has not changed, despite the increasing downward pressures due to external factors, stressing that his country's economy is recovering at a moderate pace.

On the other hand, investors are looking for the US economy to disclose preliminary data for the labor market with the release of the index of change in private sector jobs, which may reflect the acceleration of the pace of job creation to 160 thousand jobs compared to 67 thousand jobs in November, and that comes before we witness A recent Deputy Governor of the Federal Reserve and member of the Federal Open Market Committee of Elle Brenard at the Urban Institute in Washington.

Otherwise, we followed a short while ago the Pentagon stated in a statement that "Iran launched more than ten ballistic missiles against American and coalition forces in Iraq, and it is clear that these missiles were launched from Iran and targeted at least two military bases hosting military and personnel from The coalition forces in Assad and Erbil, "which reinforced concern about the growing tensions between Washington and Tehran and the outbreak of war between them.

It is reported that US President Donald Trump expressed last Monday that he would not allow Iran to possess nuclear weapons, and this came after Tehran announced Sunday that it will no longer adhere to the limits of uranium enrichment set forth in the 2015 nuclear agreement, which Washington withdrew unilaterally in 2018, as Trump threatened Recently, 52 sites in Iran were destroyed, including military and strategic sites, if Iran threatens his country's interests in the Middle East.

Technical analysis

The dollar versus yen pair opened today's trading with a strong drop to break the 108.40 level and approached the first negative target at 107.45, which stops the suggested positive possibility yesterday and leads the price to achieve more expected decline during the upcoming sessions, noting that a break of 107.45 will extend the downside wave to reach 106.30 In the short term.

Therefore, the bearish direction will be expected for today unless 108.40 then 108.60 levels are breached and stability is established above it.

The expected trading range for today is between 107.45 support and 109.00 resistance.

Expected trend for today: bearish.