USDJPY 18.03.2020

The US dollar fell during the Asian session to witness its rebound to the second session in four sessions from its highest since March 3 against the Japanese yen amid growing fears of a global outbreak of the Corona virus and in the wake of developments and economic data that we followed about the Japanese economy and on the eve of developments and economic data expected Today Wednesday by the US economy the largest economy in the world.

At exactly 06:12 am GMT, the US dollar pair fell against the Japanese yen by 0.73% to 106.91 levels compared to the opening levels at 107.70, after the pair achieved its lowest level during the trading session at 106.89, while achieving the highest at 107.71.

We have followed on from the Japanese economy the release of the Trade Balance Index reading, which showed a surplus of 1,110 billion yen against a deficit of 1,313 billion yen last January, surpassing expectations that indicated a surplus of 917 billion yen, as the seasonally adjusted reading showed The same index had a surplus of 505 billion yen compared to a deficit of 81 billion yen in January, below expectations for a surplus of 544 billion yen.

This came with the annual reading of exports showing that the decline declined to 1.0% compared to 2.6% in the previous annual reading in January, contrary to expectations that the decline will increase to 4.6%, while the annual reading of imports showed the decline in the decline to 14.0% compared to 3.6% in the reading The year prior to January, contrary to expectations that the decline will be 14.1%.

On the other hand, investors are currently waiting for the US economy to disclose housing market data with the release of each of the beginning housing index and building permit index and amid expectations that the reading of building permits reflect a 3.2% decline to 1,500 thousand permits compared to a rise of 9.2% at 1,551 thousand permits In January, the readings for homes that were built may also reflect a 4.3% decline to about 1,507 thousand homes, compared to a rise of 16.9% at 1,567 thousand homes.

Otherwise, yesterday we followed the report that touched on the fact that the volume of incentives planned by the administration of the forty-fifth US President Donald Trump might reach $ 1.2 trillion to avoid the worst impact of a crisis that already seems to be flooding many global economies in a recession, and yesterday we followed the announcement of a bank The Federal Reserve reported additional tools in efforts to stabilize financial markets.

In the same context, US Treasury Secretary Stephen Mnuchen warned that the Corona virus could lead to an increase in unemployment rates in his country to 20% in the event that the US government does not interfere, with his announcement of a three-month delay in paying taxes in America and that the US administration is working to send aid to those affected. , Adding that the fact that aid would be approved as part of efforts to counter the negative effects of the Corona outbreak may exceed what was announced in the newspapers.

This comes, hours after the sudden meeting of the Federal Reserve last Sunday, during which members of the Federal Open Market Committee decided to cut interest rates by 100 basis points to between zero levels and 0.25%, after less than two weeks from another sudden meeting The Federal Reserve was able to reduce interest by 50 basis points at the time, and quantitative easing plans and bond purchases of $ 700 billion a month were announced.

Technical analysis

The dollar versus yen pair made noticeable positive trading yesterday to test the pivotal resistance 107.98, and we are still waiting for the breach of this level to confirm the bullish wave extension on the intraday and short term, where our next target is located at 109.60.

In general, the bullish trend scenario remains effective for the upcoming period, provided stability above 104.63, noting that the current stochastic negativity explains the reasons for the difficulty of achieving the required breach.

The expected trading range for today is between 106.20 support and 108.30 resistance.

Expected trend for today: bullish.