USDJPY analysis 05.02.2020

The fluctuation of the US dollar in a narrow range slanted toward decline during the Asian session, to witness its bounce to the tenth session in fourteen sessions from its highest since May 23 against the Japanese yen amid the scarcity of economic data by the Japanese economy and on the cusp of developments and economic data expected today Wednesday from Before the American economy, the largest economy in the world.

At 6:12 am GMT, the US dollar pair rose against the Japanese yen by 0.06% to 109.45 levels compared to the opening levels at 109.52, which is the highest level for the husband during the trading session, while the pair achieved the lowest at 109.37.

Investors are currently 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 a slowdown in the pace of job creation to 157 thousand added jobs compared to 202 thousand added jobs in December, hours before the disclosure On the monthly report of jobs except agricultural and unemployment rates in addition to the hourly rate for the month of January after tomorrow, Friday.

This comes before we witness the release of the Trade Balance Index reading, which may reflect the widening of the deficit to $ 48.2 billion compared to $ 43.1 billion in November, before we witness the release of the final reading of the Service Supply Institute index by Markit for the United States, the world's largest economy Which may reflect the stability of the expansion at 53.2, unchanged from the initial reading for the past month and compared to 52.8 in December.

To reveal the reading of the Institute for Service Supply index, which may appear widening to 55.1 compared to 55.0 in December, and we would like to point out, because the service provision is important because the service sector in the United States represents more than two thirds of GDP, and that comes before it We see the talk of Federal Open Market Committee member and Federal Reserve Governor Elle Brenard about innovation of payment at Stanford University.

Other than that, we followed yesterday yesterday, the Director of the International Monetary Fund, Kristina Georgieva, expressed that the fund supports the efforts of China in trying to contain the Corona virus that started in Wuhan, China, explaining that the fund does not only support medical efforts, but also supports all economic and financial efforts adopted by the Chinese government Which aims to address the economic damage caused by the coronavirus.

This came in conjunction with the market assessment of the stimulus adopted by the People's Bank of China (the Central Bank of China) last Sunday in conjunction with the end of the Lunar New Year holiday in China, which was extended amid fears of the spread of the Corona virus, which has claimed more than 500 lives in China so far, This is in addition to the fact that there are more than twenty thousand cases infected with the virus worldwide.

Technical analysis

The dollar pair rose against the yen strongly yesterday, breaking through the level of 109.33 and settling above it, which stops the negative scenario suggested in our recent reports and leads the price to resume trading within the bullish channel that appears in the picture, paving the way towards heading towards 110.50 as a next positive target.

Therefore, a bullish bias will be favored for today unless the 109.33 level is broken and stability below it again.

The expected trading range for today is between 109.00 support and 110.50 resistance.

Expected trend for today: bullish.