USDJPY analysis 07.02.2020

The US dollar fluctuated in a narrow range, which is slipping toward decline during the Asian session, to witness its rebound from above since January 22 against the Japanese yen, following the developments and economic data that were reported by the Japanese economy, the third largest economy in the world, and on the cusp of developments and economic data expected on Friday from Before the American economy the largest economy in the world.

At exactly 05:51 AM GMT, the US dollar pair fell against the Japanese yen by 0.08% to 109.90 levels compared to the opening levels at 109.99, after the pair achieved its lowest level during the trading session at 109.81, while the pair achieved its highest in two weeks at 110.02 .

On the Japanese economy, we followed the disclosure of December data with the release of the annual household spending index, which showed that the decline widened to 4.8% compared to 2.0% in November, contrary to expectations that the decline fell to 1.7%, in conjunction with the reading showed The annual average income steady at zero levels versus a 0.1% rise, outperforming the forecasts that indicated a 0.1% decline, before the reading of the leading indicators that showed an increase to 91.6 versus 90.8, outperforming the forecasts at 91.4.

On the other hand, we have just followed the talk of a member of the Federal Open Market Committee and Deputy Governor of the Federal Reserve Randall Quarlis about monetary policy and economic expectations at New York University, and this came amid the markets' aspiration to reveal the data of the American labor market last month, which may reflect the stability of unemployment rates at The lowest in five decades at 3.5% for the third month in a row.

In the same context, investors are also looking to the US economy for the release of the employment change index for sectors other than agriculture, which may reflect the acceleration of the pace of job creation to 163,000 jobs compared to 145,000 jobs last December, as the average income index reading in The hour, growth accelerated to 0.3% versus 0.1%. This is before the final reading of the wholesale stocks index, which may explain the stability of the decline at 0.1%.

Technical analysis

The dollar versus the yen trades near the 110.00 barrier, and the price continues to move within the bullish channel that appears in the picture, while the moving average 50 provides positive support for the price, and therefore, the bullish trend will remain likely during the upcoming sessions, with a reminder that our targets start at 110.50 and extend to 111.50 after Break through the previous level.

We remind you that the continuation of the expected bullish wave requires stability above 109.33.

The expected trading range for today is between 109.30 support and 110.70 resistance.

Expected trend for today: bullish.