USDJPY analysis 29.05.2020

The US dollar fell during the Asian session against the Japanese yen after the developments and economic data that it followed about the Japanese economy and on the threshold of economic developments and data expected on Friday by the American economy, which includes the participation of Federal Reserve Governor Jerome Powell in a hypothetical discussion at the University of Griswold Center for Economic Policy Studies at the University of Princeton in New Jersey and US President Donald Trump's press conference in Washington on China.

At exactly 06:06 AM GMT, the US dollar pair declined against the Japanese yen by 0.49% to 107.12 levels compared to the opening levels at 107.65 after the pair achieved its lowest level since May 18 at 107.09, while it achieved its highest during trading The session is at 107.72.

On the Japanese economy, we have followed the release of the annual reading of the Tokyo Consumer Price Index, which showed an acceleration of growth to 0.4% compared to 0.2% in the previous annual reading of last April, while the substantial annual reading of the same index, which excludes fresh food, showed a growth of 0.2% against contraction 0.1%, contrary to expectations for a contraction of 0.6%.

This came before we witnessed the disclosure of the industrial sector data for the third largest industrial country in the world with the release of the initial reading of the industrial production index, which showed the widening of the decline to 9.1% compared to 3.7% last March, worse than the expectations that indicated the expansion of the decline to 5.5%, The annual reading of the same index also showed that the decline widened to 14.4% compared to 5.5% in the previous annual reading for the month of March.

It also came in conjunction with the release of the seasonally adjusted reading of the retail sales index, which reflected the widening of the decline to 9.6% compared to 4.6% in March, and the annual reading of the same index indicated the widening of the decline to 13.7% compared to 4.7% in March, worse than the expectations that She pointed to the widening of the decline to 11.2%, with the reading of the unemployment rate indicator showing an increase to 2.6% compared to 2.5% in March, beating expectations of 2.7%.

Up to the disclosure of the consumer confidence index reading, which showed an increase to 24.0 compared to 21.6 in April, contrary to expectations at 21.3, in conjunction with the disclosure of housing market data with the release of the annual reading of the index of start-up, which showed the decline widened to 12.9% Against 7.6% in March, worse than expectations for the decline to 12.0%.

On the other hand, investors are currently awaiting by the US economy, the largest economy in the world, to disclose spending and personal income data, which may reflect the widening decline in personal spending to 12.6% compared to 7.5% in March, and the expansion of personal income to 7.0% compared to 2.0% in March, as the reading of the core personal consumption expenditures price index may explain the decline to 0.3% compared to 0.1% in March.

This comes in conjunction with the release of the merchandise trade balance index, which may explain the widening of the deficit to $ 64.8 billion compared to $ 64.2 billion in March, in conjunction with the release of the initial reading of the wholesale inventory index, which may reflect a decline in the decline to 0.5% compared to 0.8% In March, before the Chicago PMI reading was revealed, it may reflect a contraction of 40.1 versus 35.4 in April.

Up to the disclosure of the final reading of the University of Michigan's index of consumer confidence, which may show the stability of the expansion at a value of 73.7, little changed from what it was in the preliminary reading of the previous month and against 71.8 in April, and this comes before the expected speech of the Federal Reserve Governor Jerome Powell and the US President Donald Trump's press conference on China.

Technical analysis

The dollar against the yen trades bounced lower after approaching the side-range resistance that confines the last trades as it appears in the picture, to start testing the pivotal support 107.35 now, which requires attention from the upcoming trades, as breaking this level will stop the expected upside in the intraday and short term and put the price Under negative pressure, its targets start by visiting the 106.44 level.

The price needs to breach 107.68 then 108.00 levels to facilitate the mission towards the next main target for the expected bullish wave at 109.22.

The expected trading range for today is between 106.80 support and 108.20 resistance.

Expected trend for today: bullish.