USDJPY analysis 06.04.2020

The US dollar rose during the Asian session to witness its bounce to the fourth session from its lowest since March 18 against the Japanese yen amid the scarcity of economic data today by the Japanese economy and the American economy, the largest economy in the world and with the evaluation of markets in the first sessions of this week to the developments of outbreaks Corona virus globally.

At exactly 6:23 am GMT, the US dollar pair rose against the Japanese yen by 0.48% to 109.01 levels compared to the opening levels at 108.49, after the pair achieved its highest level since March 27 at 109.13, while achieving the lowest during trading The session at 108.33, knowing that the pair started the trading session on a falling price gap after it concluded the trading last week at 108.55 levels.

We followed up last week, Japanese Prime Minister Shinzo Abe stated that his government will work with local administrations to contain the outbreak of the Corona Virus, while touching that his government discussed whether there is a need to declare a state of emergency in Japan or not, and this happened hours after Abe announced Wednesday a decision His government is holding all expatriates from outside Japan for 14 days in quarantine, and includes the Japanese decision coming from abroad.

Also, last Wednesday, Japanese Prime Minister Abe announced a ban on those coming from 49 foreign countries to his country until further notice, and this came hours after the Japanese government spokesman expressed the priority at the present time to put the spread of the Corona virus under control, and that the current situation does not require The government resorted to establishing a state of emergency in Japan, denying the report that recently raised the possibility of Japan declaring a state of emergency at the beginning of this month.

In another context, we followed up on Wednesday, Bank of Japan Governor Haruhiko Kuroda expressed his admission that central banks cannot deliver banknotes printing for an extended period without borders, with his discussion that his country is not facing a crisis in price stability at the moment, and informed him that the Bank of Japan is still The growth of inflation is targeted to around 2%, and in order to do so, it will adjust monetary policy when needed to maintain price stability.

On the other hand, deaths in New York State decreased for the first time despite US President Donald Trump's recent warning that the coming period was "painful" for his country, and after he recently announced the extension of quarantine in America until the end of this month to reduce the spread of the coronavirus, According to the latest figures released by the organization, the number of cases infected with the virus has increased to nearly 1,137 thousand, and 62,955 people have died in 208 countries.

Technical analysis

The dollar against the yen pair begins today's trading with a new rise to penetrate 108.50 and is approaching the test of the pivotal resistance 109.20, affected by the positivity of the stochastic indicator, noting that cohesion without this resistance keeps the scenario of the downside trend based on the intraday basis, and the price needs to break the 108.50 then 107.68 levels to confirm the resumption The descending wave with the next target at 106.44.

Therefore, we will maintain our expectations for the overall bearish trend, keeping in mind that breaching 109.20 will lead the price to achieve additional gains targeting the resistance of the main descending channel around 111.10 before any new attempt to decline.

The expected trading range for today is between 107.70 support and 109.20 resistance.

Expected trend for today: Overall decline.