USDJPY analysis 24.08.2020

The Japanese yen fell against the US currency during trading today, Monday, in light of the escalation of the Corona virus crisis in the country with the third largest economy in the world.

The Japanese government announced an increase in the number of Coronavirus infections in a number of regions and provinces, which reflects warnings of some that Tokyo will be exposed to a second wave of the disease.

For its part, the World Health Organization confirmed the highest absence of any vaccine yet for the "Corona" virus that had fulfilled the organization's conditions regarding safety of use and effectiveness.

The US Food and Drug Administration had officially announced the approval of the use of blood plasma of people recovering from the "Corona" virus in treating people with the disease in a way that would contribute to containing the coronavirus in the United States.

The US dollar is experiencing fluctuations in light of the cautious anticipation of the developments of Corona and also of the "Jackson Hole" meetings later this week.

In terms of trading, the US dollar rose against the Japanese yen, by 06:41 GMT, by 0.1% to 105.8, and the highest price was recorded at 105.9 and the lowest price was at 105.6.

Technical analysis

The dollar versus yen pair provided temporary positive trades last Friday, to test the 106.00 barrier, but it begins to rebound down from this level, as the moving average 50 forms good negative pressure against the price, while the stochastic oscillator begins to cross negatively.

Thus, these factors support the continuation of the expected negative scenario for the upcoming period, whose targets start with testing 105.20, with a reminder that breaking this level will push the price to 103.65 as a next main target, while the expected decline will remain intact unless the 106.44 level is breached and stability above it.

The expected trading range for today is between 105.00 support and 106.40 resistance.

The expected general trend for today: Bearish.