JPYUSD analysis 08.05.2020

The US dollar fluctuated in a narrow range tilted to the upside during the Asian session to witness its bounce for the second session fromthe lowest since March 17th, while it is still in its fourth consecutive weekly losses against the Japanese yen after the developments and economic data that it followed from the Japanese economy On the cusp of developments and economic data expected today, Friday, by the American economy.

At exactly 06:04 am GMT, the US dollar pair rose against the Japanese yen by 0.12% to 106.41 levels compared to the opening levels at 106.28 after the pair achieved its highest level during the trading session at 106.46, while achieving the lowest at 106.22.

On the Japanese economy, we followed the disclosure of the March data with the release of the annual household spending index, which showed that the decline widened to 6.0% compared to 0.3% last February, outperforming expectations that indicated a decline to 6.3%. This came in conjunction with the annual average income reading showing a slowdown in growth to 0.1%, in line with expectations, compared to 0.7%.

On the other hand, investors are currently waiting for the US economy to disclose labor market data with the release of the employment change index for sectors other than agriculture, which may reflect the loss of 22 million jobs compared to the loss of 701 thousand jobs last March, while an average index reading may show Hourly income accelerated growth to 0.5% versus 0.4%. This was with the unemployment rate reading showing a rise to 16.0% to 4.4% in March.

This comes, as we have also witnessed by the largest economy in the world the issuance of the final reading of the wholesale stocks index, which may reflect the stability of the decline at 1.0% during last February, and according to the latest figures issued by the World Health Organization, the number of cases infected with the Coronavirus rose to nearly 3.68 One million 254,199 people were killed in 215 countries.

Technical analysis

The dollar against the yen trades stable below the 106.44 level, to keep the negative pressure in place for the upcoming period, supported by the EMA50, waiting for the resumption of the downtrend whose next target is located at 105.20.

Note that breaching 106.44 will push the price for intraday gains aiming to test 107.68 level before any new attempt to decline.

The expected trading range for today is between 105.20 support and 106.80 resistance.

Expected trend for today: bearish.