JPYUSD analysis 02.06.2020

The fluctuation of the US dollar in a narrow range tilted to the upside during the Asian session against the Japanese yen, following the developments and economic data that it followed from the Japanese economy, amid the scarcity of economic data by the US economy, the largest economy in the world, and the pricing of investors to reopen global economies against the escalation of protests in the United States of America Recently.

At exactly 06:09 AM GMT, the US dollar pair rose against the Japanese yen by 0.12% to 107.71 levels compared to the opening levels at 107.59 after the pair achieved its highest level during the trading session at 107.75, while achieving the lowest at 107.51.

We have followed about the Japanese economy revealing the annual reading of the monetary base index by the Bank of Japan, which showed an acceleration of growth to 3.9% compared to 2.3% last April, outperforming expectations that indicated an acceleration of the growth rate to 2.6%, and it is reported that the Central Bank The Japanese have started using this indicator as their main operating objective for the monetary base scheme since April of 2013.

In another context, markets assessed the possibilities of the US military deploying in the United States to suppress social strikes and violent demonstrations in cities over the killing of George Floyd of African descent by the police, after the curfew failed to contain massive protests that included violence and looting with demonstrators taking to the streets after weeks Closings during the Corona pandemic, which has caused millions to lose their jobs.

It is worth noting that these expanded strikes taking place in America have strengthened concern about the coronary virus outbreak more broadly among these human groupings and restored fears about the chances of recovery for the economy that is just emerging from the Great Depression in the thirties of the last century, and Trump yesterday criticized sharp criticism of state deans American, while describing them as weak and that they must take more stringent measures in dealing with the protests.

Technical analysis

The lateral range dominates the trading of the dollar pair against the yen as shown in the picture, and as long as the price is above 107.35, our bullish expectations will remain valid for the coming period, supported by the moving average 50, waiting for a positive incentive that contributes to pushing the price to breach the 108.00 level to facilitate the task of heading towards our main goal Next awaited at 109.22.

The expected trading range for today is between 107.00 support and 108.50 resistance.

Expected trend for today: bullish.