JPYUSD analysis 09.07.2020

The US dollar fluctuated in a narrow range tilted to the upside during the Asian session, to witness its rebound from the lowest since June 29 against the Japanese yen, following the developments and economic data that were reported by the Japanese economy and on the cusp of developments and economic data expected Thursday by the US economy, the largest economy in The world is in the shadows of concern about the increasing number of people infected globally with the Coronavirus, especially in the United States.

At exactly 06:01 am GMT, the US dollar pair rose against the Japanese yen by 0.04% to 107.30 levels compared to the opening levels at 107.26 after the pair achieved its highest level during the trading session at 107.36, while achieving the lowest in a week at 107.18.

We have followed about the Japanese economy, the third-largest economy in the world and the third-largest industrialized country globally, to disclose the reading of the machinery orders index, which showed a rise of 1.7% compared to a decline of 12.0% last April, surpassing expectations that indicated a decline of 5.2%, while the annual reading showed For the same index, the decline declined to 16.3% compared to 17.7%, also exceeding expectations that indicated a decline of 17.1%.

This came in conjunction with the disclosure of the annual reading of the M-2 money supply index, which showed an acceleration in the growth rate to 7.2% compared to 5.1% last May, outperforming expectations at 5.6%, up to the disclosure of the annual primary reading of the machinery rate requests index That reflected a contraction of the decline to 32.0% compared to 52.8% in May.

Other than that, we followed 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 imposed on Asia's second-largest economy to contain the outbreak of the Corona Virus by July 10 this year. The decision will be adopted taking into account comprehensive steps to prevent the spread of coronavirus in his country.

On the other hand, investors are currently awaiting by the American economy the release of the index of subsidy requests for the last week on the fourth of July, which may reflect a decline of 52 thousand requests to 1,375 thousand applications compared to 1,427 thousand requests in the previous reading, as may appear reading subsidy applications Continuing for the last week on the 27th of June, down by 340 thousand requests to 18,950 thousand requests compared to 19,290 thousand requests.

This comes before we witness the issuance of the final reading of the wholesale stocks index, which may confirm a decline of 1.2%, unchanged from the initial reading for the month of May, and against a rise of 0.3% last April, and in the shadow of the market's assessment of the increasing number of cases infected with the Coronavirus in America, This prompted many states to propose the restoration of closures, while White House economic adviser Larry Kudlow yesterday stressed that the economy would not be closed again.

Technical analysis

Yesterday the dollar versus the yen traded negatively, moving away from the 107.68 level and settling below the EMA50 now, to keep the bearish trend scenario effective for the upcoming period, and the path is open for heading towards our expected negative target at 106.44.

Stability below 107.68 is important for the continuation of the expected decline, as breaching it will lead the price to start recovery attempts targeting the areas of 108.15 then 109.22 in the near term.

The expected trading range for today is between 106.50 support and 108.00 resistance.

Expected trend for today: bearish.