USDJPY analysis 04.02.2020

The US dollar fluctuated in a narrow range tilted to the upside during the Asian session to witness its bounce back to the third 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 it followed on the Japanese economy On the cusp of developments and economic data expected today, Tuesday, by the US economy, the largest economy in the world.

At exactly 6:22 am GMT, the US dollar pair rose against the Japanese yen by 0.12% to 108.82 levels compared to the opening levels at 108.69, after achieving its highest level during the trading session at 108.86, while achieving the lowest at 108.55.

On the Japanese economy, we followed the disclosure of the annual reading of the monetary base index by the Bank of Japan, which showed a slowdown in the pace of growth to 3.2% compared to 3.3% last November, contrary to expectations that indicated an acceleration in the pace of growth to 3.6%. It is reported that the bank The Japanese central bank has started using this indicator as its main operating objective for the monetary base scheme since April of 2013.

On the other hand, investors are currently awaiting by the US economy, the largest industrialized country in the world, the release of the factory orders index, which may reflect a 0.7% rise compared to a 0.7% decline in the past November, while the annual reading of the same index, excluding transportation, may show a slowdown in the pace of growth To 0.1%, compared to 0.3% in the prior annual reading for November.

Technical analysis

The dollar versus yen pair is re-testing the broken support for the upside channel and maintains its stability below it until now, accompanied by a noticeable lack of positive momentum stochastic, while SMA 50 continues to press negatively on the price.

From here, these factors encourage us to continue to suggest the bearish trend for the upcoming period, whose targets begin with breaking the 108.40 level to open the way for visiting 107.45 as a next station, noting that stability below 109.33 is important for the continuation of the suggested decline.

The expected trading range for today is between 108.00 support and 109.30 resistance.

Expected trend for today: bearish.