USDJPY analysis 11.05.2020

The US dollar fluctuated in a narrow range tilted to the upside during the Asian session to witness its bounce to the third session from the lowest since March 17 against the Japanese yen after the Bank of Japan unveiled a summary of opinions report on Sunday and amid the scarcity of economic data at the beginning of this week by the economy The American is the largest economy in the world.

At exactly 05:55 am GMT, the US dollar pair rose against the Japanese yen by 0.26% to 106.93 levels compared to the opening levels at 106.65 after the pair achieved its highest level during the trading session at 107.01, while achieving the lowest at 106.40.

We have followed this past weekend reporting to France, Italy and the United Kingdom the lowest number of deaths due to the spread of the Coronavirus globally since March, which boosted investor hopes for the reopening of global economies while easing social divergence measures globally, while Caution still remains, as they just followed a warning by South Korea about a possible second wave of coronavirus cases.

In another context, yesterday we followed the warning of the US Treasury Secretary Stephen Mnuchen that unemployment rates in his country "may get worse before they improve" and that unemployment rates may have reached 25%, and his statements came hours after the US labor market data showed last Friday high rates US unemployment rose to nearly seven decades, to 14.7%, with about 20.5 million jobs lost in April due to the outbreak of the Coronavirus.

Technical analysis

The dollar against the yen provided positive trades at the end of last Friday to move above 106.44, as it was affected by the positivity of the stochastic indicator, which requires attention from the upcoming trades, as the price needs to trade below this level again to confirm the continuation of the expected bearish trend in the intraday and short term, which targets a level 105.20 as the next stop.

By looking closely at the chart, we find that the recent trading is confined within a possible bearish wedge pattern, which means that breaching 106.85 will stop the suggested negative scenario and lead the price to achieve intraday gains that start with testing the level of 107.68 and may extend to 109.22 in the short term.

The expected trading range for today is between 105.80 support and 107.50 resistance

Expected trend for today: bearish