Japanese yen analysis 18-20-2020

The fluctuation of the US dollar in a narrow range slanted toward decline during the Asian session, to witness its bounce to the seventh session in ten sessions from the top since March 26 against the Japanese yen amid the scarcity of economic data by the Japanese economy and on the cusp of developments and economic data expected on Thursday by the economy The American is the largest economy in the world.
At exactly 05:51 am GMT, the US dollar pair fell against the Japanese yen by 0.16% to 106.84 levels compared to the opening levels at 107.01 after the pair achieved its lowest level during the trading session at 106.70, while achieving the highest at 107.05.
Investors are looking to the US economy for the issuance of the aid claims index for the week that elapsed on June 12, which may reflect a decline of 342 thousand applications to 1,300 thousand applications compared to 1,542 thousand requests in the previous reading, as the reading of the continuous subsidy applications for the past week may also appear in The fifth of this month, down by 1,129 thousand requests to 19,800 thousand requests, compared to 20,929 thousand requests.
This comes in conjunction with the disclosure by the largest industrialized country in the world of industrial sector data with the release of the Philadelphia Industrial Index reading, which may reflect the contraction in contraction to 23.0 compared to 43.1 last May, and before we also witnessed by the American economy the reading of indicators The leader, which may reflect a rise of 2.4%, compared to a decline of 4.4% last March.
To the talk of the President of the Cleveland Bank and the Federal Open Market Committee member Loretta Mester about the response of the Federal Reserve to the Corona pandemic in an event hosted by the World Takaful Center, and this comes hours after the activities of the semi-annual certification of the Governor of the Federal Reserve Jerome Powell about the monetary policy in front of Congress American.
We would like to point out, because Powell Naughty testified before the Congress that there is a state of uncertainty about the timing and strength of the potential economic recovery and that the current downturn may lead to widening inequality within America in the event that the matter is not contained, while touching that "until the confidence is restored that the Corona pandemic is under control." , A full recovery will not be possible "and that" the downward curve continues and with it the possibility of jobs falling under the risk of final loss and business closure "
Powell said earlier this week that it is unlikely that we will fully recover the largest economy in the world before restoring economic confidence, with his consideration of the fact that the epidemic has a greater impact on people with low incomes, while addressing the fact that the difference in high unemployment is now in 2008, that At that time, there were no jobs, while the current situation is the result of business closings and that with its return people return to their jobs.
 
Powell stressed that the Federal Reserve is ready to provide more stimulus if the need arises and that the Federal Open Market Committee will do everything in its power to support the American economy, and that he touched on the fact that the Federal Reserve works to ensure the effectiveness of protection and safety systems before working to issue a digital dollar , Adding that if it turns out that the digital currency will be beneficial to the American economy, then the Federal Reserve will work to issue it.

Technical analysis
 
The dollar versus the yen resumed its negative trading significantly, to approach our awaited target at 106.44, and the price falls under continuous negative pressure coming from the EMA50, to support the chances of breaking the aforementioned level and opening the way for the descending wave to extend in the short term, noting that the next target reaches To 105.20.
 
From here, we expect the bearish direction to prevail in the upcoming sessions unless the price rushes to breach the 107.68 level and hold above it.
 
The expected trading range for today is between 106.00 support and 107.50 resistance
 
Expected trend for today: bearish