USDJPY analysis 25.03.2020

The US dollar rose during the Asian session to witness its bounce back to the tenth session in thirteen sessions from the lowest since October 3, 2016 against the Japanese yen after the developments and economic data that it had reported on the Japanese economy and on the cusp of developments and economic data expected today Wednesday by the US economy and with Investors evaluate the incentive to face the repercussions of the global spread of the Corona virus.

At exactly 05:57 am GMT, the US dollar pair rose against the Japanese yen by 0.08% to 111.32 levels compared to the opening levels at 111.23, after the pair achieved its highest level during the trading session at 111.54, while achieving the lowest at 110.76.

We have followed about the Japanese economy, the second largest economy in Asia and the third largest economy in the world after both the United States and China. The Bank of Japan revealed a summary of opinions report, and this came hours after the Japanese Prime Minister Shinzo Abe’s statements yesterday, during which he expressed his agreement with The International Olympic Committee postponed the Olympics for a year, to be held next year due to the global outbreak of Corona virus.

On the other hand, investors are currently awaiting the US economy to disclose 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 the widening of the decline to 1.0% compared to 0.2% in January. / January, while the core reading of the same index may show a 0.4% decline compared to a 0.8% increase in January.

This comes before we witness the disclosure of housing market data with the release of the house price index, which may explain the slowdown in the pace of growth to 0.4% compared to 0.6% last December, and this comes in conjunction with the aspiration of investors to reach the poles of US policy both the ruling Republican Party And Democrat for an agreement about the fiscal stimulus package that was proposed by the US administration recently, which is estimated at $ 2 trillion.

Other than that, we followed last Monday the Federal Reserve announced an open asset purchase program and bond purchases from companies directly, which stimulated risk appetite among investors in financial markets in the shadow of industrial action. Monetary policy in the world's largest economy and in major global economies to expand In stimulation to support financial markets in the face of the repercussions of the outbreak of the Coronavirus.

Technical analysis

The dollar versus the yen found strong support at 110.00 areas, to bounce up and test the pivotal resistance that appears in the image again, which requires attention from the upcoming trading, as stability above 111.25 will push the price out of the main downside channel and shift towards the rise in the short and medium term.

Until now, the downside trend is still likely for the upcoming period unless the price confirms the breach of 111.25 level, while noting that our first main target is at 109.06.

The expected trading range for today is between 110.00 support and 112.00 resistance.

Expected trend for today: bearish.