Japanese Yen Analysis 24-06-2020

The fluctuation of the US dollar in a narrow range tilted to the upside during the Asian session to witness its bounce to the second session from the lowest since May 7 against the Japanese yen after the developments and economic data that it had reported on the Japanese economy and on the cusp of developments and economic data expected on Wednesday by the US economy The largest economy in the world.
 
At exactly 6:20 am GMT, the US dollar pair rose against the Japanese yen by 0.07% to 106.59 levels compared to the opening levels at 106.52 after the pair achieved its highest level during the trading session at 106.64, while achieving the lowest at 106.39.
 
We have followed the Japanese economy on the disclosure of inflation data with the release of the annual reading of the services price index, which showed the stability of the pace of growth during May at 0.8%, little changed from what it was in the previous annual reading last April, in line with expectations, This came in conjunction with the Bank of Japan unveiling the summary opinion report.
 
On the other hand, investors are currently awaiting by the US economy the disclosure of housing market data with the release of the housing price index, which may explain the acceleration of growth to 0.3% compared to 0.1% last March. Otherwise, we followed yesterday, US President Donald Trump expressed in Tweeting him on his official Twitter account, the number of Coronavirus infections is high in his country due to the increased number of tests conducted by the US government.
 
In the same context, US President Trump added that if the number of tests is reduced, the number of coronavirus infections will decrease significantly, and he states that he had previously suggested that the Corona pandemic crisis in the United States was coming to an end, also expressing at the time that the detection of corona testing was exaggerated. And increased the number of cases infected with this dangerous virus.
 
We would like to point out that the White House health advisor, Dr. Anthony Fossey, expressed yesterday, during his testimony in a hearing before the House of Energy and Trade Committee, that he was "very concerned" about the high incidence of Coronavirus infections in America that "reflects the increasing prevalence in society", warning of the virus Corona does not take a summer vacation, however, he noted that countries with a high incidence of coronavirus outbreaks may not need "complete closure".
 
In another context, US President Trump also expressed via Twitter earlier this week 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 reached earlier this year. Between the two largest economic and industrial countries in the world are still standing, which reflects, in one way or another, the escalation that led to an escalation between Washington and Beijing recently.

Technical analysis

  
The dollar against the yen succeeded in achieving our first expected target at 106.44 and settling around it, where he made an attempt to break it without being able to stabilize without him until now, noting that SMA 50 constitutes a negative pressure against the price, waiting for the price to be stimulated to break the mentioned level and confirm the descending wave extension To reach 105.20 as next stop.
 
Consequently, we continue to favor the bearish trend for the upcoming period, noting that failure to achieve the required break will lead the price to start recovery attempts targeting mainly the 107.68 level.
 
The expected trading range for today is between 105.60 support and 107.10 resistance
 
Expected trend for today: bearish