JPYUSD analysis 14.07.2020

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 ten sessions from the top since June 9 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 today Tuesday by The American economy is the largest economy in the world.

At 05:50 am GMT, the US dollar pair fell against the Japanese yen by 0.06% to 107.23 levels compared to the opening levels at 107.29 after the pair achieved its lowest level during the trading session at 107.12, while achieving the highest at 107.37.

On the Japanese economy, we have followed the disclosure of industrial sector data with the release of the final reading of industrial production, which showed a widening decline to 8.4% compared to the previous initial reading for the month of May and expectations at 8.4% and against a decline of 9.8% last April, as indicated by the annual reading For the same indicator, the decline expanded to 26.3% compared to 25.9%, and the reading of the rate of energy utilization reflected a decrease in the decline to 11.6% compared to 13.3%.

On the other hand, investors are currently waiting for the US economy to disclose inflation data with the release of the CPI reading that may show 0.5% growth versus a 0.1% contraction in May, as the substantial reading of the same indicator may show 0.1% growth versus 0.1% contraction While the annual reading of the index may reflect the acceleration of growth to 0.6% versus 0.1%, and the substantial annual reading may show a slowdown in growth to 1.1% versus 1.2%.

Technical analysis

The dollar against the yen traded positively positive yesterday to test the resistance line that appears in the image, and today begins with a bearish tendency in a sign of the trend of the price to resume the bearish trend, supported by the negative signal that appears clearly through the stochastic indicator, waiting for the trend towards 106.44 as the first main target.

Therefore, we will maintain our bearish expectations, provided that the price maintains its stability below 107.68, while noting that breaching the targeted level will extend the descending wave to reach 105.20 in the short term.

The expected trading range for today is between 106.40 support and 107.70 resistance.

Expected trend for today: bearish.