USDJPY analysis 10.03.2020

The US dollar rose during the Asian session to witness its bounce to the second session from the lowest since October 3, 2016 against the Japanese yen after the developments and economic data that were adopted today by the Japanese economy and amid the scarcity of economic data at the beginning of this week by the American economy, the largest economy In the world.

At 06:04 am GMT, the US dollar pair rose against the Japanese yen by 2.26% to 104.67 levels compared to the opening levels at 102.36, after the pair achieved its highest level during the trading session at 105.02, while achieving the lowest at 102.02.

We have followed about the Japanese economy, the Bank of Japan revealed the annual reading of the M-2 bank lending index, which showed an acceleration in the pace of growth to 3.0% compared to the previous annual reading last January and expectations at 2.8%, and this came before we witnessed the disclosure of the initial reading Annual index of machinery rates for the past month, which reflected a decline in the decline to 30.1%, compared to 35.6% in January.

Otherwise, yesterday we followed US President Donald Trump's press conference on Corona Virus in Washington through which he noted that his administration will discuss a possible salary tax cut with the Congress and that there will be "major" economic announcements Tuesday, and in the same context, Italy added restrictions Travel to the closed northern region. In another context, US Treasury Secretary Stephen Mnuchin has rejected comparisons of the current situation with the financial crisis.

We would like to point out, because the Director-General of the World Health Organization noted yesterday that the risk of the Corona virus turning into a global pandemic has become a reality, although he expressed that despite this it is still possible to contain the spread of this dangerous virus, explaining that it is strategic that must focus on containing and stopping the spread of the virus And adding that he is optimistic about the strong measures taken by Italy and hopes for positive results of these measures.

Technical analysis

The dollar pair against the yen achieved a remarkable rise yesterday to compensate for a large part of the losses incurred in the previous sessions, as it is re-testing the previously broken support at 104.63, awaiting the bounce down to resume the main bearish trend.

In general, the negative scenario will remain effective unless the 104.63 level is breached and stability above it, as breaching it will push the price to achieve more gains and visit 105.40 then 1.0670 levels, while our next negative target is at 100.25.

The expected trading range for today is between 103.30 support and 105.30 resistance.

Expected trend for today: bearish.