JPY analysis 10.01.2020

The US dollar fluctuated in a narrow range tilted to the upside during the Asian session, to witness its bounce for the third consecutive session from the lowest since October 10 and to promise to resume its weekly gains that were stopped last week for the first time in four weeks against the Japanese yen after the developments and economic data that It was reported on the Japanese economy and is on the cusp of developments and economic data expected Friday by the US economy.

At 06:04 am GMT, the US dollar pair rose against the Japanese yen by 0.05% to 109.57 levels compared to the opening levels at 109.52, after achieving the highest level since December 27 at 109.60, while achieving the lowest during trading The session is at 109.46.

We have followed on from the Japanese economy the release of the annual reading of the household spending index, which showed a decline in the decline to 2.0% in line with expectations, compared to 5.1% in the previous annual reading of last October, and this came before we witnessed the disclosure of the reading of the leading indicators, which showed a decrease to Its value was 90.9 in line with expectations, compared to 91.6 in October.

On the other hand, investors are currently awaiting by the US economy the disclosure of labor market data for the past month, which may reflect the stability of unemployment rates at the lowest in five decades of time at 3.5%, while a reading of the employment change index for sectors other than agriculture may show a slowdown in the pace of creation Jobs to 162 thousand jobs compared to 266 thousand jobs. The reading of the average hourly income index may show that the growth accelerated to 0.3% compared to 0.2%.

Technical analysis

The dollar versus yen made a clear breach of 109.33 and closed the daily candle above it, which activates the bullish trend scenario over the intraday basis, on its way to visit the 110.50 level as a next main station.

Consequently, a bullish bias will be favored for today, noting that breaking 109.33 and holding below it will put the price under negative pressure aimed at testing the 108.40 level initially.

The expected trading range for today is between 108.70 support and 110.30 resistance.

Expected trend for today: bullish.