USDJPY analysis 07.04.2020

The US dollar fell during the Asian session to witness its rebound for the second session from its top since March 27 against the Japanese yen after the developments and economic data that it had reported on the Japanese economy and the US economy is the largest economy in the world and with the assessment of markets to developments in the global outbreak of the Corona virus, especially after the announcement Japanese Prime Minister Shinzo Abe on the emergency and stimulus package.

At exactly 06:02 AM GMT, the US dollar pair fell against the Japanese yen by 0.36% to 108.83 levels compared to the opening levels at 109.22, after the pair achieved its lowest level during the trading session at 108.67, while achieving the highest at 109.28.

We have followed the Japanese economy on the release of the annual reading of the household spending index, which showed a decline in the decline to 0.3% compared to 3.9% last January, outperforming the expectations that indicated a decrease in the decline to 3.3%, and that came, in conjunction with the annual reading showed an average index Income slowed growth to 1.0% from 1.2% in January, also beating expectations for slowing growth to 0.2%.

In another context, we followed a little while ago the Japanese Prime Minister Shinzo Abe declared a state of emergency in the Japanese capital Tokyo and in Osaka in addition to five other cities, noting that seven cities will be subject to the state of emergency for a month, with his statement that his government will work to ensure the continuation of the activity As much as possible, and is currently working on a stimulus package of 108 trillion yen ($ 990 billion).

On the other hand, investors are currently awaiting by the US economy the disclosure of labor market data with the release of a job reading and job turnover that may reflect a decrease to 6.55 million compared to 6.96 million in January, and that comes before we witness the release of the consumer credit reading That may show accelerated growth to $ 13.9 billion, compared to $ 12.0 billion in January.

It is noteworthy that US President Donald Trump recently warned that the coming period is "painful" for America, after he announced earlier last month that the quarantine would be extended in the United States until the end of this April to limit the spread of the Corona virus, according to the latest figures issued by The organization has increased the number of cases infected with the virus to nearly 1,215 thousand and 67,841 people were killed in 211 countries.

Technical analysis

The dollar against the yen tested a level of 109.20 and bounced down from there, to keep the downside scenario active and effective in the intraday and short term, supported by the approach of the stochastic approach from the overbought areas, and the price needs to break the 108.50 level to facilitate the task of achieving our negative goals that start at 107.68 and extend to 106.44 after exceeding the previous level.

On the other hand, it should be noted that breaching 109.20 will stop the suggested decline and push the price to test 111.10 areas before any new attempt to resume the downside main wave.

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

Expected trend for today: Overall decline.