USDJPY analysis 06.05.2020

The US dollar fluctuated in a narrow range slanting to a downward trend during the Asian session against the Japanese yen amid the scarcity of economic data by the Japanese economy at the beginning of this week due to the Constitution Day holiday in Japan and on the cusp of developments and economic data expected on Monday by the American economy, the largest economy in the world

At exactly 06:03 AM GMT, the US dollar pair fell against the Japanese yen by 0.16% to 106.27 levels compared to the opening levels at 106.40 after the pair achieved its lowest level during the trading session at 106.19, while achieving the highest at 106.60.

Investors are currently awaiting by the US economy the disclosure of preliminary data for the labor market with the release of the index of change in private-sector jobs, which may reflect the loss of 20.5 million jobs compared to the loss of 27 thousand jobs last March, and that comes hours before the disclosure after Friday On the monthly report of jobs except agricultural and unemployment rates in addition to the hourly rate for the month of April.

Technical analysis

The dollar versus the yen pair is making new attempts to break the 106.44 level now, reinforcing expectations for the continuation of the bearish trend scenario in the intraday and short term, with a reminder that our next stop is at 105.20.

SMA 50 supports bearish expectations, noting that the continuation of the descending wave requires stability below 107.68 and 108.00 levels.

The expected trading range for today is between 105.50 support and 107.00 resistance.

Expected trend for today: bearish.