JPYUSD analysis 27.07.2020

The US dollar fell during the Asian session against the Japanese yen, to witness its lowest level since March 16th, amid developments and economic data that it had reported on the Japanese economy and before the economic developments and data expected on Monday by the US economy, the largest economy in the world. Amidst concern over the recent escalation of tensions between Washington and Beijing.

At exactly 05:55 AM GMT, the US dollar pair fell against the Japanese yen by 0.31% to 105.66 levels compared to the opening levels at 105.99 after the pair achieved its lowest level in four months at 105.46, while it achieved its highest during the trading session at 106.16, Knowing that the pair started the trading session on a falling price gap after it concluded the trading last week at 106.14 levels.

We have followed the Bank of Japan's unveiling of the summary report of its views of its last meeting held in the middle of this month, which includes the expectations of monetary policymakers at the Japanese Central Bank that the Japanese economy will recover moderately during the second half of this year, while also warning that the economy is "without Likely to return to levels before the outbreak of the Corona pandemic until fiscal 2022.

This came before we witnessed the disclosure of industrial sector data for the third largest economy in the world and the third largest industrialized country globally with the release of the index of the overall industrial activities, which showed a decline in the decline to 3.5%, in line with expectations, compared to 7.6% last April, leading to the disclosure The Bank of Japan reported an annual core reading of the CPI that showed 0.1% growth vs. stability at zero levels last May.

On the other hand, investors are currently awaiting the US economy to disclose the reading of the durable goods orders index, which represents about half of consumer spending, which represents more than two-thirds of the gross domestic product in the United States, which may reflect slowing growth to 7.0% compared to 15.7% in May. May, as the core reading of the same indicator, may show, growth slowed to 3.5%, compared to 3.7% in May.

Technical analysis

The dollar pair traded against the yen with a strong negative to be able to break the 106.44 level and rush down to approach our second expected target at 105.20, and by looking at the graph, we find that the price exceeded the pivotal horizontal support level located at 106.00, to put the price under more expected negative pressure in the term The longest, and paves the way for crossing 105.20 to open the way for heading towards 103.65 areas as the next major station.

From here, we expect the downside movement to continue in the upcoming sessions, provided that the price maintains its stability below 106.44.

The expected trading range for today is between 104.60 support and 106.30 resistance.

Expected trend for today: bearish.