USDJPY analysis 31.03.2020

The US dollar rose during the Asian session to witness its bounce for the second consecutive session from the lowest since March 18 against the Japanese yen after the developments and economic data that it reported on the Japanese economy and on the cusp of developments and economic data expected today by the American economy, the largest economy in the world and in Following the expansion of the industrial and services sector, contrary to expectations in China, the largest trading partner of Japan and the United States.

At exactly 05:58 AM GMT, the US dollar pair rose against the Japanese yen by 0.45% to 108.25 levels compared to the opening levels at 107.76, after the pair achieved its highest level during the trading session at 108.72, while achieving the lowest at 107.74.

We have followed on from the Japanese economy to disclose many economic data for the month of February, starting from the disclosure of labor market data with the release of the unemployment rate index, which showed stability at 2.4% during the past month, in line with expectations and passing through the seasonally adjusted reading of a sales index Retail up 0.2%, compared to a decline of 1.5% last January, contrary to expectations that the decline will reach 1.6%.

The annual reading of the retail sales index also showed an increase of 1.7% compared to a decline of 0.4% in January, contrary to expectations that the decline was reduced to 1.5%, in conjunction with the disclosure of industrial sector data for the third largest industrial country globally with the release of the initial reading of industrial production, which Growth slowed to 0.4% versus 1.0% in January, outperforming expectations for stability at zero levels.

In the same context, the annual reading of the industrial production index showed that the decline widened to 4.7% compared to 2.3% in January, surpassing expectations that indicated a decline to 4.8%, and finally we followed the disclosure of housing market data with the release of the beginning of the beginning of the index of the starting house index Its establishment showed that the decline declined to 12.3% compared to 10.1% in January, outperforming expectations that the decline declined to 14.6%.

On the other hand, investors are currently waiting for the US economy to disclose housing market data with the release of the house price index, which may show a slowdown in growth to 0.40% compared to 0.43% last December, and the annual reading of the S&P House Price Index showed an acceleration Growth to 3.29% versus 2.85% in the previous annual reading for December.

This comes before we witnessed by the largest industrialized country in the world, the disclosure of industrial sector data with the release of the Chicago PMI reading, which may reflect the widening of the contraction to 44.1 compared to 49.0 in February, up to the disclosure of the consumer confidence index reading that may appear Breadth shrank to 115.1 from 130.7 in the previous reading in February.

It is noteworthy that US President Donald Trump recently signed a stimulus package estimated at $ 2 trillion to support the largest economy in the world and American families and companies in facing the repercussions of the Corona virus, after the package was passed by the US Congress last week, and Trump approved last Sunday the extension Guidelines for social restrictions in the United States until next April 30.

Technical analysis

The dollar versus yen pair was unable to hold long below 107.68, to open today positively and try to compensate for some of its recent losses, but it faces good resistance formed by the moving average 50 around 108.75, which supports the chances of bouncing back to resume the negative scenario suggested in our recent reports, whose objectives begin Breaking the level of 107.68 to open the way for heading towards 106.44.

Therefore, the downside trend will remain favorable for the coming period unless the price rushes to breach the 109.20 level and hold above it.

The expected trading range for today is between 107.40 support and 109.20 resistance.

Expected trend for today: Overall decline.