USDJPY analysis 17.07.2020

The fluctuation of the US dollar in a narrow range slanted toward decline during the Asian session, to watch its bounce for the ninth session in thirteen sessions from its top since the ninth of June amid the scarcity of economic data by the Japanese economy in the last sessions of the week and before the developments and economic data expected on Friday from Before the American economy the largest economy in the world.

At exactly 06:07 AM GMT, the US dollar pair fell against the Japanese yen by 0.07% to 107.19 levels compared to the opening levels at 107.27 after the pair achieved its lowest level during the trading session at 107.17, while it achieved its highest at 107.36.

Investors are currently awaiting the release of the housing market data by the American economy, with the release of both the index of start-up homes and the construction permit index and amid expectations that the reading of building permits will give rise to about 1.17 million permits compared to about 0.97 million permits in May, as may The start-up reading gives rise to about 1.30 million homes compared to about 1.22 million homes in May.

This comes before the preliminary reading of the University of Michigan index of consumer confidence appears, which may indicate a widening value of 79.0 compared to 78.1 in the previous reading last June.

Technical analysis

The dollar versus the yen provided more positive trading to the moving average above 50, but we notice that the stochastic starts providing clear negative signals on the four-hour time frame, waiting for the price to stimulate the resumption of the main bearish trend, which aims to test the 106.44 level as a next station.

Therefore, the bearish trend scenario will remain intraday, whose targets extend to 105.20 after exceeding the first target, noting the importance of holding below 107.68 for the continuation of the suggested decline.

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

Expected trend for today: bearish.