JPYUSD 23.06.2020

The US dollar fluctuated in a narrow range tilted to the upside during the Asian session against the Japanese yen after the developments and economic data that it followed from the Japanese economy and on the cusp of developments and economic data expected on Tuesday by the US economy, the largest economy in the world and in the wake of US President Donald Trump that the trade deal With China intact.
 
At 05:55 AM GMT, the US dollar pair rose against the Japanese yen by 0.19% to 107.11 levels compared to the opening levels at 106.96 after the pair achieved its highest level during the trading session at 107.22, while achieving the lowest at 106.774.
 
We followed the revelation of the initial reading of the manufacturing PMI by Markit on Japan, which showed the contraction widened to 37.8 compared to 38.4 in May, contrary to expectations that the contraction will shrink to 39.5, and this came before we witnessed the Bank of Japan's unveiling of the fundamental annual reading of the index Consumer prices, which showed stability at zero levels compared to the previous reading in April and expectations of -0.1% contraction.
 
On the other hand, investors are currently awaiting the disclosure of the initial reading of the Markit manufacturing and services PMI for the United States of America, which may reflect the expansion of the industrial sector in the largest industrial country in the world to 50.0 compared to a contraction at 39.8 in the previous reading for May, while it may We are witnessing a shrinking of the service sector to 46.9 compared to 37.5 in May.
 
This comes before we witness from the US economy the release of the Richmond Industrial Index reading that may reflect the contraction in contraction to 3 compared to 27 in May, in conjunction with the disclosure of housing market data with the release of new home sales, which may show an increase of 3.5% to about 637 One thousand homes, compared to a 0.6% increase at about 623 thousand homes last April.
 
Other than that, we followed yesterday, Monday, US President Donald Trump, in his Twitter account on his official account, expressed that “the Chinese trade deal is completely sound. We hope that they will continue to abide by the terms of the agreement!” Which confirmed that the first stage of the trade deal that was reached To it early this year between the two largest economies and the two largest industrialized countries in the world are still standing, which reflects the fading escalation that led to an escalation between Washington and Beijing.

Technical analysis

  
The dollar versus yen pair is opening today's trading with an upward tendency to test the moving average 50, which continues to pressure negatively on the intraday trading, accompanied by a marked stochastic loss of positive momentum and reaching the overbought areas, waiting for the price stimulus to resume negative trades.
 
In general, we continue to favor the bearish trend for the next period unless the price rushes to breach the 107.68 level and hold above it, noting that our first awaited target is at 106.44.
 
The expected trading range for today is between 106.30 support and 107.80 resistance
 
Expected trend for today: bearish