USDJPY analysis 22.06.2020

The US dollar fluctuated in a narrow range slanting to the upside during the Asian session against the Japanese yen amid the scarcity of economic data earlier this week by the Japanese economy and on the cusp of developments and economic data expected on Monday by the US economy, the largest economy in the world and among investors' assessment of the possibility of a second wave outbreak Corona virus with the increase in the number of new infections.

At exactly 05:51 am GMT, the US dollar pair rose against the Japanese yen by 0.01% to 106.89 levels compared to the opening levels at 106.88 after the pair achieved its highest level during the trading session at 106.94, while achieving the lowest at 106.75, knowing, The pair eased the session session on an upward price gap after the pair concluded last week's trading at 106.87 levels.

Investors are currently awaiting by the US economy the release of the Chicago Business Index reading for the month of May, before the housing market data was also revealed for the past month with the release of the Existing Home Sales Index, which may reflect a 2.3% decline to about 4.15 million homes compared to a decline by 17.8% at about 4.33 million homes in the previous reading for the month of April.

Other than that, the World Health Organization announced on Sunday the largest increase in the number of coronavirus infections in one day, as the number of new cases reached 183 thousand cases infected with Corona virus in the previous 24 hours, with Brazil recording 54,771 cases and a difference of 18,154 cases from the United States Which came second from the recent number of new infections by 36,617 cases.

India recorded more than 15.4 thousand new cases infected with coronavirus in one day, and health experts requested that increase in the number of new cases infected with coronavirus because it could be due to several factors including that more tests were done as well as a wider spread of infection, according to the latest figures Issued by the organization, the number of cases infected with the Coronavirus rose to nearly 8.71 million, and 461,715 people were killed in 216 countries.

Technical analysis

The narrow range continues to dominate the trading of the dollar against the yen, and it falls under continuous negative pressure coming from the EMA50, which keeps the bearish trend scenario intact as it is unchanged, which aims to test the 106.44 level as a next station, noting that breaking this level will push the price To 105.20 as a next negative target, while stability below 107.68 is an important condition for the suggested decline to continue.

The expected trading range for today is between 106.00 support and 107.50 resistance

Expected trend for today: bearish