USDJPY analysis 15.04.2020

The fluctuation of the US dollar in a narrow range tilted toward the decline during the Asian session to witness the highest since the beginning of this April, when he tested the lowest since 18 March last against the Japanese yen amid the scarcity of economic data by the Japanese economy and on the cusp of developments and economic data expected Today Wednesday by the US economy the largest economy in the world.

At 05:50 am GMT, the US dollar pair fell against the Japanese yen by 0.18% to 107.03 levels, compared to the opening levels at 107.22, which is the highest level for the husband during the trading session, while the pair achieved its lowest level in two weeks at 106.93.

Investors are currently awaiting the US economy to reveal a retail sales reading that represents about half of consumer spending, which represents more than two-thirds of the gross domestic product of the United States, which may reflect the widening decline for the worst ever to 8.0% compared to 0.5% in February, as well as A substantial reading of the same indicator may also show the widest decline for the worst ever to 4.9% compared to 0.4% in February.

This comes in conjunction with the disclosure of industrial sector data for the largest industrial country in the world with the release of the New York Industrial Index reading, which may reflect the widening of the contraction to 35.2 compared to 21.5 in March, before the release of the Industrial Production Index, which may reflect a 4.1% decline compared to It rose 0.6% in February, while an energy utilization rate reading may show a slowdown in the pace of growth to 73.7% compared to 77.0% in February.

Markets are also looking to publish a reading of the wholesale stocks index, which may explain the decline in the decline to 0.4% compared to 0.1% in January, in conjunction with the disclosure of housing market data with the release of the housing index reading by the National Association of Home Builders, which may reflect a decline to 56 versus 72 in February, all the way to the unveiling of the Big Book, which is important because it is published two weeks before the FOMC meeting.

Technical analysis

The dollar versus yen pair confirmed the breaking of the 107.68 level and decreased significantly yesterday, to move away from the aforementioned level and head towards our awaited target at 106.44, which supports the continuation of the bearish trend scenario suggested in our recent reports, supported by the negative pressure that SMA 50 constitutes, noting that a break The mentioned level will push the price to 105.20 directly.

On the other hand, it should be noted that breaching 107.68 and holding above it will stop the suggested decline and push the price to start new recovery attempts targeting mainly the 108.50 then 109.20 levels.

The expected trading range for today is between 106.20 support and 108.00 resistance.

Expected trend for today: bearish.