JPYUSD analysis 15.07.2020

The US dollar fluctuated in a narrow range tilted to the upside during the Asian session, to witness its bounce for the second session in four sessions from the lowest since June 24 against the Japanese yen, following the developments and economic data that it had reported on the Japanese economy and on the cusp of developments and economic data expected on Wednesday by The American economy is the largest economy in the world.

At exactly 06:11 am GMT, the US dollar pair rose against the Japanese yen by 0.04% to 107.28 levels compared to the opening levels at 107.24 after the pair achieved its highest level during the trading session at 107.31, while achieving the lowest at 107.19.

We have followed the monetary policymakers ’decision with the Japanese central bank to keep interest rates negative at 0.10%, which came in line with expectations, while also remaining committed to directing the 10-year government bond yield at zero and ensuring that additional steps will be taken For monetary easing without hesitation if necessary, warning that the risks to the economy are in a downtrend.

The Bank of Japan disclosed the monetary policy statement and its quarterly forecast, which touched on the fact that the Japanese economy may shrink 4.7% during FY 2020, and that it may witness an expansion of 3.3% in FY 2021 and 1.5% in 2022 and that the huge may shrink 0.5% in FY 2020 before To expand 0.3% in 2021 and 0.7% in 2022. Otherwise, the markets are looking forward to the events of the press conference that Bank of Japan Governor Haruhiko Kuroda will hold.

On the other hand, investors are currently awaiting by the US economy the release of the import price index, which may clarify the stability of growth at 1.0%, with little change from the previous reading last May, and this comes in conjunction with the disclosure of industrial sector data for the largest industrial country in the world With the release of the New York Manufacturing Index reading, which may reflect a 10.0% expansion versus a contraction at 0.2 in June.

Up to the issuance of the industrial production index, which may reflect the acceleration of growth to 4.5% compared to 1.4% in May, as a reading of the Energy Utilization Index may show the acceleration of growth to 67.9% compared to 64.8% in May, before we witness the talk of the committee member Federal Open Market and Federal Reserve Chairman Patrick Harker about economic prospects in a hypothetical discussion hosted by the City Center Owners Association.

This comes before we witnessed the unveiling of the book Big, whose importance lies in the fact that it is issued two weeks before the FOMC meeting. Otherwise, we followed yesterday the US President Donald Trump's announcement of signing legislation to impose sanctions on China in response to its interference in the autonomy of Hong Kong He also signed an executive order ending Hong Kong's special status with his country, while again blaming China for the global outbreak of corona.

Technical analysis

The dollar pair hovers against the yen around the EMA50, and settles below the resistance line that appears in the picture, and therefore, there is no change to the expected bearish trend scenario for the upcoming period, which depends on stability below 107.68 level, while its main targets start at 106.44 and extend to 105.20 after crossing the level the previous.

The expected trading range for today is between 106.40 support and 107.80 resistance.

Expected trend for today: bearish.