JPYUSD analysis 24.04.2020

The US dollar fluctuated in a narrow range tilted to the upside during the Asian session, to witness its bounce to the fifth session in eight sessions from the lowest since early April, when it tested the lowest since 18 March against the Japanese yen, after the economic data that it reported on the Japanese economy and on The economic developments and data expected on Friday by the US economy is the largest economy in the world.

At exactly 05:55 AM GMT, the US dollar pair rose against the Japanese yen by 0.06% to 107.66 levels compared to the opening levels at 107.60 after the pair achieved its highest level during the trading session at 107.76, while achieving the lowest at 107.55.

On the Japanese economy, we followed the disclosure of inflation data with the release of the annual reading of the national consumer price index, which showed stable growth in line with expectations at 0.4% in March, while the annual reading of the same index, which excludes fresh food, showed slowing growth to 0.4% also compatible With expectations and against 0.6% in the previous annual reading for last February.

In the same context, we also followed the release of the annual reading of the consumer price index excluding energy and fresh food, which showed stable growth in line with expectations at 0.6% during March, and this came before we witnessed the release of the annual reading of the services price index, which showed slowing growth to 1.6 % Versus 2.1% in February, worse than expected at 1.7%.

Up to the disclosure by the second-largest economies of Asia and the third-largest economy and the third-largest industrialized country in the world after both China and the United States of America, data on the industrial sector with the release of the index of overall industrial activities, which showed a 0.6% decline compared to a 0.6% increase, which was modified from a rise 0.8% in February, worse than expected, indicating a 0.4% decline.

On the other hand, investors are currently awaiting the US economy to disclose the reading of the durable goods orders index, which represents about half of consumer spending, which represents more than two-thirds of the gross domestic product in the United States, which may reflect a 12.0% decline compared to a rise of 1.2% in February In the past, while a substantial reading of the same indicator may show a widening decline to 6.1% compared to 0.6% in February.

This comes before we witness the revelation of the final reading of the University of Michigan's index of consumer confidence, which may show a shrinkage in the amplitude of 67.8 compared to 71.0 in the previous reading of the previous month and 89.1 in March, otherwise, we followed yesterday the approval of the House of Representatives by an overwhelming majority on The stimulus package to support small companies and medical centers, which is estimated at $ 484 billion, to face the consequences of the outbreak of the Coronavirus.

We would like to point out that the bill was passed last Tuesday in the Senate amid the polarity of the American policy, both the ruling Republican Party with the majority of the Senate and the Democratic Party with the majority of the House of Representatives, to provide financing for small companies and support the largest economy in the world in the face of the consequences of the virus outbreak Taji, and US President Donald Trump is expected to sign the bill later.

Technical analysis

The dollar against the yen enabled yesterday's trading to close below 107.68, which supports the continuation of our bearish expectations, noting that the stochastic is providing a negative crossover indication that we are waiting to contribute to pushing the price down during the upcoming sessions, where our next target is located at 106.44.

On the other hand, it should be noted that breaching the 108.25 level will push the price to shift to the upside over the intraday basis to test the 109.22 level before any new attempt to decline.

The expected trading range for today is between 106.80 support and 108.30 resistance.

Expected trend for today: bearish.