JPYUSD analysis 08.07.2020

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 amid the scarcity of economic data today by the US economy, the largest economy in the world and in the shadow of concern about the increasing number of people infected with global coronavirus, especially in South and North America.

At 06:04 am GMT, the US dollar pair rose against the Japanese yen by 0.02% to 107.54 levels compared to the opening levels at 107.52 after the pair achieved its highest level during the trading session at 107.71, while achieving the lowest at 107.51.

We have followed on from the Japanese economy the release of the current account index reading, which showed that the surplus widened to a value of 0.82 trillion yen compared to 0.26 trillion yen last April, surpassing expectations that indicated the widening of the surplus to 0.71 trillion yen, and this came in conjunction with the release of the annual reading The bank lending index, which reflected an acceleration in growth to 6.2%, compared to 4.8% in April, beating expectations of 5.0%.

The Japanese Cabinet Office revealed an ECO Watchers statistic reading of the current and future conditions, which showed the contraction of the current situation has shrunk to 38.8 compared to 15.5 last May, outperforming the expectations that indicated the contraction will decrease to 24.7, as the reading of future conditions showed that the contraction has shrunk To 44.0 vs. 36.5, also beating expectations for a contraction to 24.1.

Otherwise, we followed up earlier this week, according to Japanese Economy Minister Yasutoshi Nishimura that the Japanese government agreed with experts that it is possible to lift more restrictions on Asia’s second largest and third largest economies in the world to contain the outbreak of the Coronavirus by July 10 Ongoing, stating that this decision will be adopted taking into account the comprehensive steps to prevent the spread of coronavirus in his country.

Technical analysis

The dollar against the yen is taking a new test for the level of 107.68 and maintains its stability below it, and we notice that the stochastic indicator provides clear negative signals on the four-hour time frame, waiting for the price to stimulate the resumption of the expected bearish direction for the next period, which targets the 106.44 level as a next station.

We point out that breaching 107.20 will facilitate the price's mission by achieving the mentioned target, while the expected decline will remain if the 107.68 level is not breached and stability remains with a daily closing above it.

The expected trading range for today is between 106.60 support and 108.00 resistance.

Expected trend for today: bearish.