JPYUSD analysis 22.07.2020

The US dollar fluctuated in a narrow range tilted to the upside during the Asian session against the Japanese yen, following the developments and economic data released by the Japanese economy and before the economic developments and data expected today by the US economy, the largest economy in the world.

At exactly 05:52 AM GMT, the US dollar pair rose against the Japanese yen by 0.03% to 106.83 levels compared to the opening levels at 106.80 after the pair achieved its highest level during the trading session at 106.89, while achieving the lowest at 106.71.

Markit revealed the initial reading of the PMI for Japan, Asia's second largest economy, the third largest economy in the world and the third largest industrialized country globally, which showed contraction shrinking to 42.6 compared to 40.1 in the previous reading of last June, unlike Expectations for deflation widening to 39.6.

On the other hand, investors are currently awaiting by the US economy the disclosure of housing market data with the release of the house price index, which may indicate accelerated growth to 0.3% compared to 0.2% last April, before the release of the existing home sales index, which may reflect An increase of 24.5% to about 4.77 million homes compared to a decline of 9.7% at about 3.91 million homes last May.

Technical analysis

The dollar versus yen resumed its negative trading yesterday noticeably to approach our waited target at 106.44, to keep the downside scenario valid and effective, supported by the negative pressure formed by the EMA50, noting that breaching the mentioned level will extend the downside wave to reach 105.20 as the next station.

On the other hand, it should be noted that a breach of 107.68 will stop the expected decline and lead the price to turn bullish.

The expected trading range for today is between 105.90 support and 107.20 resistance.

Expected trend for today: bearish.