USDJPY analysis 15.05.2020

The fluctuation of the US dollar in a narrow range slanted toward decline during the Asian session, to witness its bounce for the third session in five sessions from the top since April 23 against the Japanese yen after the developments and economic data that it had reported on the Japanese economy and on the cusp of developments and economic data expected Friday by the economy The American is the largest economy in the world.

At exactly 6:26 am GMT, the US dollar pair fell against the Japanese yen by 0.03% to 107.22 levels compared to the opening levels at 107.25 after the pair achieved its lowest level during the trading session at 107.19, while achieving the highest at 107.43.

On the Japanese economy, we have followed the release of the PPI reading, which is an initial indication of inflationary pressures, which showed the contraction widened to 1.5% compared to the previous reading in March and expectations at 0.9%, as the annual reading of the same index indicated the contraction expanded to 2.3% compared to 0.4% In the previous annual reading for the month of March, worse than expectations that indicated the expansion of the contraction to 1.4%.

On the other hand, investors are currently awaiting by the US economy the disclosure of the retail sales reading, which represents about half of consumer spending, which represents more than two-thirds of the gross domestic product of the United States, which may reflect the widening decline for the worst ever to 12.0% compared to 8.7% in March March, as the fundamental reading of the same index may reveal that the worst rate ever fell to 8.6% compared to 4.5% in March.

This comes in conjunction with the disclosure of industrial sector data for the largest industrial country in the world with the release of the New York industrial index reading, which may reflect the widening of the contraction to 65.0 compared to 78.2 in April, before the release of the industrial production index, which may reflect the widening of the decline to 11.3 % Versus 5.4% in March, while a reading of the Energy Utilization Index may show a slowdown in growth to 63.9% compared to 72.7% in March.

Markets are also looking to reveal the preliminary reading of the University of Michigan index of consumer confidence, which may show a decrease to 68.0 compared to 71.8 in April, in conjunction with the final reading of the wholesale inventory index showed a decline in the decline to 0.3% compared to 0.4% in February, and the disclosure of market data Work with the release of the employment opportunities and job turnover reading, which may reflect a decrease to 5.77 million compared to 6.88 million in February.

It is reported that Federal Reserve Governor Jerome Powell Noh Wednesday during his pre-prepared speech on economic issues in an online seminar organized by the Peterson Institute for International Economics at the time that "although the economic response was timely and large, appropriately, it may not be the last chapter, Given that the road ahead is very uncertain and subject to great risks. "

Powell also warned at the time that the potential economic recession may be deeper and longer without additional fiscal stimulus, which reduced appetite for risk among investors, especially with the uncertainty experienced in the markets about reopening global economies and easing the social divergence measures imposed in efforts to reduce Coronavirus outbreak already, which could lead to a possible second wave of killer virus outbreak with the reopening.

Technical analysis

The USDJPY pair is still confined within the sideways range whose parties are represented by support 106.44 and resistance 107.68, which keeps the side movement scenario in place until the price is able to overcome one of these levels and then determine its next direction more accurately.

To find out the expected targets from the breach, please review our previous report.

The expected trading range for today is between 106.30 support and 108.00 resistance.

Expected trend for today: sideways.