USDJPY analysis 17.04.2020

The fluctuation of the US dollar in a narrow range slanted toward decline during the Asian session, to witness its rebound to the sixth session in ten sessions from its top since March 27 against the Japanese yen, after the economic data that it had reported on the Japanese economy, the third-largest economy in the world and on the threshold of developments and economic data expected today, Friday, by the American economy, the largest economy in the world.

At 06:03 am GMT, the US dollar pair fell against the Japanese yen by 0.18% to 107.73 levels compared to the opening levels at 107.92 after the pair achieved its lowest level during the trading session at 107.65, while achieving the highest at 108.08.

On the Japanese economy, the third-largest industrialized country in the world, we followed the disclosure of industrial sector data with the release of the final reading of industrial production, which showed a decline of 0.3% compared to the previous initial reading for February and expectations at a rise of 0.4% and a rise of 1.0% in January, In conjunction with the industrial reading of the Teratari index, it showed a 0.5% decline compared to a 0.3% rise in January, worse than the expectations that indicated a 0.5% decline.

Otherwise, yesterday we followed the announcement of Japanese Prime Minister Shinzo Abe to expand the state of emergency to include all of Japan, with his statement that the emergency will continue until the sixth of next May, and his call for Japanese citizens not to move from one city to another to contain the spread of the Coronavirus, It is reported that Abe announced on the seventh of this month the imposition of a state of emergency on seven Japanese cities, headed by the then Japanese capital, Tokyo.

On the other hand, investors are currently waiting for the release of the leading indicators by the US economy, which may reflect a decline of 7.1% against a rise of 0.1% in February. Otherwise, we followed yesterday. US President Donald Trump expressed his belief that the outbreak of the Coronavirus in his country had reached its peak and that the coming days will witness a noticeable decline in cases of HIV infections and deaths resulting from it, while touching on the importance of gradually restoring the economy.

Trump also announced, with his announcement of "guidelines" for restarting the economy, that the cost of sustaining the economy has been closed for an excessively long period, and the US federal guidelines issued yesterday recommend documenting the "downward path" in cases of coronavirus and influenza-like illnesses before commuting orders in The house is for citizens of the United States, after which the sunrise in the process of re-opening the country can be done in three stages.

This comes hours after US President Trump stopped his country’s funding of the World Health Organization with harsh criticism of the organization, and it is reported that the organization stated last Monday that the world had not reached the peak of the Coronavirus outbreak, warning of easing restrictions on citizen movements and the possibility of a new wave of coronavirus outbreaks This came after some countries announced plans to reduce the precautionary measures that Germany joined last Wednesday.

According to the latest figures issued by the World Health Organization, the number of cases infected with coronavirus globally has risen to nearly two million, and 131,037 people have died in 213 countries, and we would like to point out because the International Monetary Fund warned last Tuesday that the world economy may witness during this year a contraction by three Percent, which may reflect the worst performance of the global economy since the Great Depression of the 1930s.

Technical analysis

The dollar versus the yen had difficulty crossing the 108.00 barrier yesterday, to start the day negatively and press at the level of 107.68, indicating the return of the downtrend to control the intraday trading, on the way to head towards 106.44, which represents the next negative station.

From here, the downtrend will be expected for today, noting that failure to break 107.68 will lead the price to recover again and visit 108.50 then 109.20 levels.

The expected trading range for today is between 106.70 support and 108.40 resistance.

Expected trend for today: bearish.