USDJPY analysis 23.07.2020

The US dollar fluctuated in a narrow range to the upside during the Asian session against the Japanese yen.

 Amid the scarcity of economic data by the Japanese economy due to the Marine Day holiday in Japan and the developments and economic data expected today, Thursday, by the US economy, the largest economy in the world.

At exactly 05:58 AM GMT, the US dollar pair rose against the Japanese yen by 0.01% to 107.16 levels compared to the opening levels at 107.15 after the pair achieved its highest level during the trading session at 107.20, while achieving the lowest at 107.11.

Investors are currently awaiting by the US economy the issuance of the index of subsidy requests for the last week on July 18, which may reflect stability at 1.3 million requests, little changed from the previous weekly reading, while the reading of the index of continuous subsidy requests for the past week may appear on 11 of This month, a decrease of 271 thousand requests to 17,067 thousand requests compared to 17,338 thousand requests in the previous reading.

This comes before we witness the release of the leading indicators that may explain the slowdown in growth to 2.1% compared to 2.8% in May.

Technical analysis

The dollar versus yen pair is returning to the high and volatility around the EMA50, noting that the stochastic is showing clear negative signs now, waiting for the price to stimulate the resumption of the expected bearish direction for the coming period, whose objectives begin with testing the 106.44 level.

In general, the negative scenario will remain valid and active in the intraday and short term unless the 107.68 level is breached and stability above it.

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

Expected trend for today: bearish