JPYUSD analysis 04.06.2020

The fluctuation of the US dollar in a narrow range tilted to the upside during the Asian session to witness the highest level since the eighth of last April 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 central Market pricing to reopen global economies in exchange for escalating protests in the United States.

At exactly 05:51 am GMT, the US dollar pair rose against the Japanese yen by 0.14% to 109.05 levels compared to the opening levels at 108.90 after the pair achieved its highest level in two months at 109.10, while achieving the lowest during the trading session at 108.81.

Investors are currently awaiting by the US economy the issuance of the aid claims index for the last week on May 29, which may reflect a decline of 330 thousand requests to 1,820 thousand applications compared to 2,123 thousand requests in the previous reading, as may appear reading the continuing benefit requests for the last week On the 22nd of this month, a decrease of 1,002 thousand requests to 20,050 thousand requests compared to 21,052 thousand requests.

This comes in conjunction with the release of the merchandise trade balance reading, which may explain the deficit shrinking to $ 41.5 billion compared to $ 44.4 billion in April, and with the disclosure of the final reading of the productivity index and the cost of one work, and amid expectations that productivity shrinkage will remain at 2.5% and stability of the cost of one work At 4.8% unchanged from the first reading for the first quarter, compared to productivity growth of 1.2% and growth in the cost of one work 0.9% in the fourth quarter.

Technical analysis

The dollar versus the yen resumes its positive trading to approach our awaited target at 109.22, and the price is trying to confirm that the resistance of the bullish channel that appears in the picture is being overcome, to support the chances of achieving more gains in the intraday and short term, so we hope to breach the mentioned level and head towards 110.70 areas during the coming period.

From here, the bullish trend will remain dominant for today, noting that failure to achieve the required breach will put the price under a possible negative pressure that might push it to visit 107.68 areas again before any new attempt to rise.

The expected trading range for today is between 108.40 support and 110.00 resistance.

Expected trend for today: bullish.