USDJPY analysis 21.04.2020

The fluctuation of the US dollar in a narrow range slanted toward decline during the Asian session, to witness its bounce to the seventh session in the twelve sessions from the top since March 27 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 Tuesday by The American economy is the largest economy in the world.

At exactly 05:50 am GMT, the US dollar pair fell against the Japanese yen by 0.18% to 107.43 levels compared to the opening levels at 107.62 after the pair achieved its lowest level during the trading session at 107.40, while it achieved its highest at 107.79.

Investors are currently awaiting the release of the housing market data by the US economy, with the release of the Existing Home Sales Index, which may explain a 9.5% decline to 5.27 million homes compared to a 6.5% increase at 5.77 million homes last February. Otherwise, we followed Sunday The past reported US President Donald Trump that his administration is close to reaching agreement on a new stimulus package.

In the same vein, both US House Speaker Nancy Pelos and US Treasury Secretary Stephen Mnuchin expressed optimism last week about a deal to increase funds in the loan program that aims to help small American companies withstand the consequences of the coronary virus outbreaks in the states United, where the number of people infected with the Coronavirus has reached 860 thousand confirmed cases.

It is reported that US President Trump recently announced his administration's plan to gradually restart and operate the American economy, indicating that the global medical crisis may subside later, while its economic consequences remain, and we would like to point out that New York State Governor Andrew Como Noh noted last weekend that his mandate It may have exceeded the high level of death from coronavirus.

We also continued at the end of last week to report fewer daily deaths in Italy, Spain, and the United Kingdom, according to the latest figures issued by the World Health Organization, which the US President recently froze his country’s funding, which was estimated at $ 400 million annually with his criticism of the organization His claim to being biased toward China has increased the number of cases infected with the Coronavirus to nearly 2.32 million, and 157,970 people have died in 213 countries.

Technical analysis

The dollar pair against the yen ended yesterday's trading below 107.68 and begins the day with a slight bearish tendency in an attempt to move away from this level, which keeps the bearish trend scenario in place and effective for the coming period, and the path is open for heading towards our next main target 106.44.

SMA 50 continues to press negatively on the price to support the downside expectations, which will remain valid, provided that stability remains below 107.68.

The expected trading range for today is between 106.60 support and 108.20 resistance.

Expected trend for today: bearish.