USDJPY analysis 03.02.2020

The US dollar fluctuated in a narrow range tilted to the upside during the Asian session to witness its bounce to the second session from the lowest since January 8, when it tested the lowest since October 10 against the Japanese yen after the developments and economic data that we followed about the Japanese economy On the cusp of developments and economic data expected on Monday by the US economy, the largest economy in the world.

At exactly 05:51 am GMT, the US dollar pair rose against the Japanese yen by 0.08% to 108.52 levels compared to the opening levels at 108.43, after achieving its highest level during the trading session at 108.58, while achieving the lowest at 108.32, knowing that The pair started the trading session on an upward price gap after it concluded the trading last week at 108.35.

We have followed the disclosure of the final reading of the manufacturing PMI by Markit for Japan, the third largest industrial country in the world, which showed the contraction widened to 48.8 compared to the initial reading of last month at 49.3 and 48.4 last December, and we would like to point out that A reading reading at a value of 50 or higher reflects a breadth, while a reading of less than 50 indicates a contraction.

On the other hand, investors are currently awaiting by the US economy the disclosure of the final reading of the manufacturing PMI by Markit on the United States of America the largest industrial country in the world, which may reflect the stability of the expansion at a value of 51.7 without any change from the initial reading for January January, against a value of 52.4 in December.

This comes before we witness the disclosure of the Institute of Industrial Supply index reading, which may show contraction shrinkage to 48.5 compared to 47.2 in December, while the reading of the Institute of Industrial Supply measured in prices may expand to 52.0 compared to 51.7 in December, in conjunction with the release of the construction spending index, which reflects a slowdown in growth to 0.5% compared to a decline of 0.6% in November.

Technical analysis

The dollar versus yen succeeded in touching our first awaited target at 108.40 and settling there, as it attempts to break it, which supports expectations of the descending wave extending towards 107.45 which represents our next negative target.

Thus, the bearish trend scenario will remain intact and active in the intraday and short term, supported by the negative pressure formed by the EMA50, noting that the continuation of the expected decline depends on stability below 109.33.

The expected trading range for today is between 107.70 support and 109.00 resistance.

Expected trend for today: bearish.