USDJPY analysis 13.07.2020

The fluctuation of the US dollar in a narrow range slanted toward decline during the Asian session to witness its rebound to the seventh session in nine sessions from its highest since June 9 against the Japanese yen amid the scarcity of economic data at the beginning of this week by the Japanese economy and on the cusp of developments and economic data expected today Monday by the American economy, the largest economy in the world.

At exactly 05:50 am GMT, the US dollar pair fell against the Japanese yen by 0.02% to 106.90 levels compared to the opening levels at 106.92, after the pair achieved its lowest level during the trading session at 106.79, while achieving the highest at 106.97.

The markets are looking forward to the participation of the member of the Federal Open Market Committee and the President of the New York Federal Reserve Bank John Williams in a non-satellite symposium sponsored by the Bank of England and the New York Federal Reserve, and that comes before we witness the US Treasury unveiled a reading of the federal budget, which may reflect the deficit shrinkage to what its value $ 350.0 billion, compared to $ 398.8 billion in May

Technical analysis

The dollar versus the yen offered additional negative trades in the previous sessions to approach our waited target at 106.44, and we notice that the stochastic indicator is losing its positive momentum significantly, waiting for price stimulus to provide more bearish tendency to break the mentioned level and confirm opening the way towards heading towards 105.20 that represents our station The following major.

Thus, we continue to favor the bearish trend for the next period unless the price rushes to breach the 107.68 level and persist with a daily closing above it.

The expected trading range for today is between 106.00 support and 107.30 resistance.

Expected trend for today: bearish.