USDJPY analysis 26.02.2020

The US dollar fluctuated in a narrow range tilted to the upside during the Asian session to witness its rebound to the second session from the lowest since February 19 against the Japanese yen, following the developments and economic data that it had reported on the Japanese economy and on the cusp of developments and economic data expected on Wednesday by the largest US economy Economy in the World, which includes the talk of members of the Federal Open Market Committee and the shadow of market assessments of the spread of the Corona virus outside China, which could make it a global pandemic.

At 05:50 am GMT, the US dollar pair rose against the Japanese yen by 0.17% to 110.39 levels compared to the opening levels at 110.20, after the pair achieved its highest level during the trading session at 110.58, while achieving the lowest at 110.13.

We have followed about the Japanese economy, the Bank of Japan revealed the fundamental annual reading of the consumer price index, which showed the stability of growth at 0.3% during January, outperforming expectations that indicated a slowdown in growth to 0.2%. Otherwise, we followed yesterday, according to the Japanese Minister of Economy Yasutoshi Nishimura that the Japanese government will pay more attention to the economic implications of the Coronavirus, especially to the financial markets.

On the other hand, investors are currently looking for what will be revealed by the talk of a member of the Federal Open Market Committee and Chairman of the Dallas Federal Reserve Bank Robert Kaplan at a conference of emerging director in Austin, before we witness the disclosure of the US housing market data from the release of the New Home Sales Index, which may explain An increase of 2.7% to about 713 thousand houses compared to a decline of 0.4% at about 694 thousand homes last December.

All the way to another Federal Committee member who is President of the Minneapolis Federal Reserve Bank Neil Kashkari giving a speech titled "What You May Not Know About the Federal Reserve in Minneapolis" at the Minneapolis City Council business forum, otherwise, we followed yesterday a senior health official in the United States warning of the possibility Corona virus is spreading in America and coronavirus may become a global pandemic.

In another context, we have watched the rise of cases infected with Corona virus in South Korea to about a thousand cases compared to about 51 cases just a week ago, and that comes hours after South Korea earlier this week raised the alert status to confront the coronavirus to "the highest level", and the numbers increased The HIV-infected case in Italy is the most affected by Corona outside Asia, where more than 200 cases have been announced, while Iran has confirmed the death of at least 12 people.

We would like to point out, because the Director-General of the World Health Organization noted at the weekend that the outbreak of the Corona virus could still be contained and that the virus is not out of control, especially with the death toll not significantly increasing, explaining that it is too early to describe its spread as a global epidemic, stressing that It is not appropriate to use this description currently and that focus should be placed on efforts to contain it, despite the possibility of it becoming a serious pandemic.

It is noteworthy that the Director-General of the World Health Organization, Gebresus, said last Thursday that the decrease in the number of cases infected with the Corona virus outside China "may not remain the same for a long time." To temporarily close its borders with Iran and in South Korea, Samsung Electronics closed its factory there due to the spread of the virus.

Technical analysis

The dollar versus yen pair provided additional negative trading yesterday to attack the 110.27 level, reinforcing the expectations of the continuation of the bearish intraday wave, which aims to visit the bullish channel support that appears in the above chart at 109.24.

Therefore, the negative scenario will remain likely during the upcoming sessions, noting that a breakout of 111.30 will stop the expected decline and push the price to return to the main bullish path again.

The expected trading range for today is between 109.60 support and 111.00 resistance.

Expected trend for today: bearish.