Japanese Yen Analysis 26-06-2020
The US dollar fluctuated in a narrow range tilted towards the decline during the Asian session, to witness its bounce for the second session from the top since June 16, while it is still in the process of its first weekly gains in three weeks against the Japanese yen after the developments and economic data that were followed by the Japanese economy on the cusp of Economic developments and data expected today, Friday, by the American economy, the largest economy in the world.
At exactly 06:00 am GMT, the US dollar pair fell against the Japanese yen by 0.13% to 107.05 levels, which is the lowest level for the husband during the trading session, compared to the opening levels at 107.19, while the pair achieved its highest level during the trading session at 107.24.
On the Japanese economy, we followed the annual reading of the Tokyo CPI, which showed that growth slowed to 0.3% compared to 0.4% in May, contrary to expectations at 0.6%, while the fundamental annual reading of the same index, which excludes food, showed stable growth at 0.2% compatible With expectations, the substantial reading excluding food and energy showed growth slowed to 0.4%, in line with expectations, compared to 0.5%.
On the other hand, investors are currently awaiting by the US economy to disclose spending and personal income data, which may reflect a rise in personal spending 8.9% compared to a decline of 13.6% in April, while we may witness a decline in personal income to 6.0% against a rise of 10.5% in April / April, while a reading of the core personal consumption expenditures price index may show stability at zero levels versus a 0.4% decline in April.
To reveal the final reading of the University of Michigan's index of consumer confidence, which may show a widening of 79.1 compared to a widening of 78.9 in the first preliminary reading of the current month and a widening of 72.3 in May, with the release of consumer expectations for inflation for the month June for one and five years.
Technical analysis
The dollar pair against the yen approached the level of 107.68 yesterday, and begins providing negative trades to fluctuate around the EMA50, waiting to exceed the 107.05 level to facilitate the task of heading towards our first negative target expected at 106.44, where the bearish trend scenario remains valid and effective with the price stabilizing below 107.68.
On the other hand, it should be noted that breaching the last level will stop the expected decline and lead the price for new gains reaching 109.22.
The expected trading range for today is between 106.44 support and 107.80 resistance
Expected trend for today: bearish
