JPYUSD analysis 16.04.2020

The US dollar rose during the Asian session to witness its bounce for the second consecutive session from its highest since early April, when it tested the lowest since March 18 against the Japanese yen amid the scarcity of economic data by the Japanese economy and on the cusp of developments and economic data expected on Thursday By the US economy which includes the talk of Fed member and New York Fed Chairman John Williams.

At exactly 05:50 am GMT, the US dollar pair rose against the Japanese yen by 0.35% to 107.84 levels compared to the opening levels at 107.46 after the pair achieved its highest level during the trading session at 108.08, while achieving the lowest at 107.38.

Investors are currently awaiting by the American economy the release of the aid requests index for the last week on April 11, which may reflect a decline by 1,256 thousand applications to 5,350 thousand applications compared to 6,606 thousand requests in the previous weekly reading, and this comes in conjunction with the disclosure of sector data Industrial, with the release of the Philadelphia Industrial Index reading, which may reflect the widening of the deflation to 30.0 compared to 36.7 in March.

This comes before we witness the disclosure of housing market data with the release of both the beginning construction index and the building permit index, and amid expectations that the construction permits reading will reflect the widening of the decline to 10.5% to about 1,300 thousand permits compared to a 5.5% decline at 1,464 thousand permits in February / February, and the readings for homes that were built may also reflect a widening decline to 17.7% to about 1,317 thousand homes compared to a decline of 1.5% at 1,599 thousand homes in February.

Up to the talk of a member of the Federal Open Market Committee and President of the New York Federal Reserve Bank John Williams about the economic outlook at the Economic Club in New York via satellite, and that comes hours after the Federal Reserve revealed yesterday the book Big, which addressed the members of the Federal Committee for the Open Market Because the economy has a difficult path of deflation and high unemployment rates, it will continue to rise.

Other than that, the markets are looking forward to the announcement of US President Donald Trump about the "guidelines" for restarting the economy, and this comes hours after his country suspended funding for the World Health Organization with harsh criticism of the organization, and it is reported that the International Monetary Fund warned last Tuesday that the global economy may witness During this year, a contraction of 3% may reflect the worst performance of the global economy since the Great Depression of the 1930s.

Technical analysis

The decline of the dollar against the yen stopped at the 107.00 level yesterday, and shows positive positive trading with the opening of the day, to breach the level of 107.68 and settles at the 108.00 level now, which provides signals on the price trend to achieve some intraday gains during the upcoming sessions, affected by the positivity of the stochastic indicator that appears clearly Through the time frame today.

Thus, we are likely to witness further gains today, and targets start at 108.50 and extend to 109.20, noting that breaking 107.68 and holding below it will return the price to the bearish path whose next target is located at 106.44.

The expected trading range for today is between 107.20 support and 109.00 resistance.

Expected trend for today: temporarily bullish.