USDJPY analysis 13.04.2020

The US dollar fell during the Asian session to witness its bounce back to the fourth session in six sessions from the top since March 27 against the Japanese yen after the developments and economic data that were adopted earlier this week by the Japanese economy and amid the scarcity of economic data on Monday by the American economy Because of the Easter vacation there.

At exactly 05:35 am GMT, the US dollar pair fell against the Japanese yen by 0.07% to 108.41 levels compared to the opening levels at 108.49, after the pair achieved its lowest level during the trading session at 108.33, while achieving the highest at 108.59.

We have followed up on the Japanese economy, the Bank of Japan revealed the annual reading of the M-2 bank lending index, which showed an acceleration in the pace of growth to 3.3% compared to 3.0% in the previous annual reading of last February, contrary to expectations that slowing growth to 2.9%. The Japanese capital, Yoriko Koike, announced last Friday the partial closure as part of efforts to reduce the spread of the Coronavirus in the Japanese capital.

And all sports and recreational places were closed last Friday in Tokyo to reduce gatherings and according to limiting the rate of spread of the virus in the capital of Japan, then Tokyo Prefecture Koike noted that the city provides 500 thousand yen to support companies and businesses that are subject to the decision to close and provide a million yen to companies that close a number of Business at the same time, with its attention to the fact that the situation is still worrying and that Tokyo is experiencing a critical situation.

It is reported that Japanese Prime Minister Shinzo Abe declared last Tuesday a state of emergency in Tokyo and 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 economic activity as possible and that it is working at the moment On the approval of a stimulus package of 108 trillion yen ($ 990 billion).

Technical analysis

Major currency pairs show quiet and weak trading with the opening of the week, due to the impact of the financial markets holiday, and therefore, the scenarios proposed in last Friday's reports will remain as they are

As the dollar versus the yen resumes its negative trading, which supports the continuation of our bearish expectations during the upcoming sessions, paving the way for achieving our negative goals that start at 107.68 and extend to 106.44.

The stochastic is providing negative signs that support the chances of achieving the proposed targets, noting that the continuation of the expected decline requires stability below 109.20.

The expected trading range for today is between 107.40 support and 109.00 resistance.

Expected trend for today: bearish.