JPYUSD analysis 30.07.2020

The US dollar fell during the Asian session to witness its lowest level since March 12, and to count on the second monthly losses and its first monthly losses in three months against the Japanese yen after the developments and economic data that it had reported on the Japanese economy and on the cusp of developments and economic data expected on Friday by The American economy is the largest economy in the world.

At 06:04 am GMT, the US dollar pair fell against the Japanese yen by 0.35% to 104.36 levels compared to the opening levels at 104.73 after the pair achieved its lowest level in nearly five months at 104.19, while it achieved its highest during the trading session at 104.82.

We have followed on from the Japanese economy, the third largest economy and the third largest industrialized country in the world. The first reading of industrial production was released, which showed a 2.7% increase compared to an 8.9% decline last May, outperforming the expectations that indicated a 0.9% rise, while the annual reading of the same index indicated The decline narrowed to 17.7% compared to 26.3% in May, also outperforming expectations for a decrease in the decline to 21.0%.

This came before we saw the release of the unemployment rate reading, which showed a decline to 2.8% compared to 2.9% in May, contrary to expectations that it rose to 3.0%, and before the reading of consumer confidence showed the contraction shrank to 29.5 in line with expectations from 28.4 in June , In conjunction with the annual reading of the index, which began to be established, widened the decline to 12.8% compared to 12.3% in May, worse than the expectations that indicated a decline of 12.6%.

On the other hand, investors are currently awaiting by the US economy the disclosure of personal spending and income data, which may reflect the slowdown in personal spending growth to 5.3% compared to 8.2% last May, and the decline in personal income decreased to 0.8% compared to 4.2% in May. , While a reading of the core personal consumption expenditures index may show accelerated growth to 0.2% versus 0.1% in May.

This also comes in conjunction with the disclosure of the unit cost index reading, which may reflect a slowdown in growth to 0.6% compared to 0.8% in the first quarter, and before we witness the disclosure of industrial sector data for the largest industrial country in the world with the release of the Chicago PMI reading, which It may reflect a contraction of the contraction to 44.0 compared to 36.6 last June.

To reveal the final reading of the University of Michigan's index of consumer confidence, which may show a shrinkage in amplitude to 72.9 compared to 73.2 in the first reading prior to the current month and against expansion at 78.1 in June, with the release of the consumer expectations reading for July July for one year to come and five years to come.

Technical analysis

The dollar versus the yen significantly resumed its negative trading, moving away from the 105.20 level, which supports the continuation of our bearish expectations, and the path is open for heading towards our main waited target at 103.65.

SMA 50 continues to support the suggested descending wave, which will remain valid and active unless 105.20 level is breached and stability above it.

The expected trading range for today is between 103.70 support and 105.20 resistance.

Expected trend for today: bearish.