USDJPY analysis 30.03.2020

The US dollar fluctuated in a narrow range slanting toward decline, to witness its bounce for the fifth session from the top since February 21 against the Japanese yen, amid the scarcity of economic data by the Japanese economy at the beginning of this week, and following the extension of US President Donald Trump's social restrictions in America until the end of Next month due to the Corona virus and on the cusp of developments and economic data expected on Monday by the US economy.

At exactly 06:00 am GMT, the US dollar pair fell against the Japanese yen by 0.21% to 107.72 levels compared to the opening levels at 107.95, after the pair achieved its lowest level since March 18 at 107.12, while it achieved its highest during trading The session at 108.01, knowing that the pair started the trading session on an upward price gap after it concluded the trading last week at 107.94 levels.

We have followed a short while ago that US President Donald Trump extended the guidelines for social restrictions in his country until next April 30, as he mentioned that the peak number of deaths due to respiratory diseases may be two weeks away, which strengthened investor anxiety in the global financial markets. The repercussions of the outbreak of the Coruna virus, especially with uncertainty as to how long the world will remain closed due to the spread of the coronavirus.

It is reported that Trump had previously expressed his hope to reopen the American economy by Easter, but the recent widespread expansion of the coronavirus in America prompted him to extend social restrictions on Sunday, which renewed concerns about the feasibility of monetary and global stimulus amid not knowing how long the world will remain COVID-19 mortgage, or media known as corona virus.

Otherwise, investors are currently watching the US economy by revealing housing market data with the release of existing home sales, which may show a 1.8% decline compared to a 5.2% increase in January. It is reported that the US House of Representatives voted last Friday unanimously in favor of passing a package A stimulus of $ 2 trillion to support the world's largest economy and American families and companies in the face of the aftermath of the deadly virus.

We would like to note that the Director-General of the World Health Organization, Tidros Adhanum Gebresus, noted last Wednesday the importance of taking precautionary measures such as preventing gatherings, traveling and tracking and monitoring infected cases, in addition to protecting medical and health personnel, especially in poor countries where the virus is easy to spread, and according to the latest figures issued by the organization The number of HIV-positive cases has increased to more than 638,000, and 30,105 people have died in 202 countries.

Technical analysis

The dollar versus the yen succeeded in achieving our second expected goal at 107.68, and today opens with further decline to break this level and settle below it, which supports the expectations of the descending wave extending over the intraday and short term, pending the visit of the 106.44 level, which represents the next negative station.

Therefore, we will continue to favor the bearish trend, supported by moving below SMA 50, taking into consideration that breaching 107.68 will push the price to try to compensate for the recent losses and visit 109.20 areas initially.

The expected trading range for today is between 106.44 support and 108.30 resistance

Expected trend for today: bearish