USDJPY analysis 11.03.2020

The US dollar fell during the Asian session to witness its resumption from above for it since April 25, 2019 for the tenth session in fifteen sessions 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 by the American economy the largest economy In the world that includes the testimony of the US Treasury Secretary for the Fiscal Year 2021 budget.

At 6:11 am GMT, the US dollar pair fell against the Japanese yen by 1.25% to 104.32 levels compared to the opening levels at 105.64, after the pair achieved its lowest level during the trading session at 104.10, while it achieved the highest at 105.66.

This was followed by yesterday, Japanese Prime Minister Shinzo Abe stated that his government plans to spend $ 4.1 billion as a stimulus package to support the third largest economy in the world to counter the negative effects of the Corona virus outbreak, which allowed the field to reduce the panic that afflicts the global financial markets, especially after the oil price war. The latter, which contributed to the dollar pair yesterday against more than three percent yesterday, showing its best daily performance since April 4, 2013.

On the other hand, investors are currently looking for the US economy to disclose inflation data with the release of the consumer price index, which may reflect stability at zero levels against 0.1% growth in January, while the fundamental reading of the same indicator may show stability at 0.2% during In February, the annual reading of the same index may reflect slowing growth to 2.2% versus 2.5%, and the substantial annual reading of the index may show stability at 2.3%.

This comes before we witness the testimony of the US Treasury Secretary on the budget proposed by the administration of the Republican President Donald Trump for the fiscal year 2021 before the Subcommittee on Foreign Operations and Related Programs in Washington, leading to the disclosure of the US Treasury Department about the reading of the federal budget, which may reflect the breadth The deficit amounted to $ 238.1 billion, compared to $ 32.6 billion in January.

It is reported that US President Trump expressed earlier this week that his administration will discuss a possible salary tax cut with the Congress and that there will be "major" economic announcements, and the White House stated that the proposals aim to reduce taxes on workers ’salaries to zero until the end of the year and the possibility of providing material support to those affected by Corona virus, which has killed more than 4 thousand people around the world, according to the latest figures issued by the World Health Organization.

Technical analysis

The dollar versus yen pair made a breach of the 104.63 level yesterday, but today it starts negatively to move below this level, which encourages us to keep our expectations for the downside, which mainly targets the areas of 100.25, with the need to pay attention to the fact that the price cohesion above the 104.63 level will lead the pair to continue the rise and trend Towards 105.40 then 106.70 as initial positive targets.

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

Expected trend for today: bearish.