USDJPY 27.02.2020

The US dollar fell during the Asian session to witness its bounce back to the fourth session in six sessions from the top since April 25, 2019 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 by the American economy, which includes the dumping of a member At the Federal Open Market Committee and Federal Reserve Chair of the Cleveland Bank Loretta Mester the opening speech at the "Women in the Economy" seminar in Cleveland and amid market assessments of the spread of the Corona virus outside China that could make it a global pandemic.

At exactly 06:09 AM GMT, the US dollar pair fell against the Japanese yen by 0.35% to 110.04 levels compared to the opening levels at 110.43, after the pair achieved its lowest level during the trading session at 109.97, while achieving the highest at 110.46.

Yesterday, we followed up on the request of Japanese Prime Minister Shinzo Abe to postpone any sports or cultural gatherings for a period of two weeks with the aim of contributing to containing the spread of the Corona virus. He mentioned that the government is monitoring market movements and is ready to intervene, adding that it is not possible to comment on recent market movements.

Also, Japanese Prime Minister Abe noted yesterday that his government continues to communicate with the International Olympic Committee to follow up on preparations for the Chinese Olympic Games in Tokyo 2020, and this came in conjunction with the report, which touched on the fact that a member of the International Olympic Committee stated that it is possible to cancel the Tokyo Olympics due to concerns Of the outbreak of the Corona virus, adding that if the seriousness of the Olympics is confirmed, the organizers will most likely go to their cancellation.

On the other hand, investors are currently awaiting by the US economy the disclosure of the second reading of GDP, which may reflect the widening of the largest economy in the world 2.1% during the fourth quarter, little changed from the previous first reading, as the second reading of GDP measured by prices may show stability Growth at 1.4% was also little changed from what it was in the previous preliminary reading of the previous quarter.

This comes in conjunction with the disclosure of the reading of the durable goods orders index, which represents about half of consumer spending, which represents more than two-thirds of the gross domestic product in the United States, which may reflect a 1.5% decline compared to a rise of 2.4% in December, while a substantial reading may appear The same index rose 0.2%, compared to a decline of 0.1% in December.

This is also in conjunction with the issuance of the index of subsidy requests for the past week on February 15th, which may reflect an increase by one thousand requests to 211 thousand requests compared to 210 thousand requests in the previous weekly reading, up to the disclosure of housing market data with the release of home sales reading The list, which may show a rise of 2.8% compared to a decline of 4.9% in December.

Otherwise, yesterday we followed US President Donald Trump's attempt to allay investor fears of the spread of the Corona virus at a press conference, in conjunction with the US Centers for Disease Control and Prevention reported that she had identified a patient with the virus who had not traveled to China and was not exposed to another known case of HIV infection, It is reported that the chief health official in the United States warned Tuesday of the possibility of spreading the virus in his country and that the virus could become a global epidemic.

Technical analysis

The dollar versus yen pair shows new negative trading with the opening of the day to press at 110.27 level and move below it, which supports the chances of the continuation of the expected bearish direction over the intraday basis, which mainly targets 109.24.

The stochastic is providing a negative cross signal that supports achieving a further decline during the upcoming sessions, taking into consideration that the continuation of the bearish trend requires stability below 111.30.

The expected trading range for today is between 109.40 support and 110.75 resistance.

Expected trend for today: bearish.