USDJPY analysis 28.05.2020

The fluctuation of the US dollar in a narrow range slanting up during the Asian session against the Japanese yen amid the scarcity of economic data by the Japanese economy and on the cusp of developments and economic data expected Thursday by the US economy, the largest economy in the world and in the shadow of market pricing to reopen many global economies and hopes To reach a vaccine for Coronavirus.

At exactly 05:59 am GMT, the US dollar pair rose against the Japanese yen by 0.10% to 107.85 levels compared to the opening levels at 107.72 after the pair achieved its highest level during the trading session at 107.90, while achieving the lowest at 107.70.

Investors are currently awaiting by the American economy the disclosure of the second reading of the GDP index, which may confirm the contraction of the largest economy in the world by 4.8% during the first quarter, little changed from the previous initial reading and against a growth of 2.1% in the last fourth quarter, while the reading may clarify The second of the same index, measured by prices, stabilized the growth at 1.3%, little changed from the initial reading and the previous reading for the previous quarter.

This comes in conjunction with the disclosure of 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 of America, which may reflect the widening of the decline to 19.0% compared to 14.7% last March, as may appear The substantial reading of the same index extended the decline to 14.8% compared to 0.4% in March.

This also comes in conjunction with the issuance of the aid claims index for the past week on May 22, which may reflect a decline of 338 thousand applications to 2,100 thousand applications compared to 2,438 thousand requests in the previous reading, while the reading of the continuing benefit requests for the past week may appear in 15 From this month, an increase of 677 thousand requests to 25,750 thousand requests compared to 25,073 thousand requests.

This comes before we witness the disclosure of housing market data with the release of existing home sales, which may show a decline in decline to 15.0% compared to 20.8% in March, leading to the participation of FOMC members and New York Fed Chairman John Williams in a hypothetical discussion. At Stony Brook University Business School on Long Island.

Technical analysis

The dollar against the yen presented positive trading yesterday to settle above the 107.68 level, reinforcing the expectations of the continuation of the bullish trend during the coming period, as it gets continuous positive support from the EMA50, waiting for a further increase to visit the 109.22 level mainly.

On the other hand, it should be noted that breaching a 107.35 level will stop the expected bullish trend and press the price to shift to the downside.

The expected trading range for today is between 107.00 support and 108.60 resistance.

Expected trend for today: bullish.