JPYUSD analysis 25.08.2020

The yen stabilized negatively against the US dollar during trading on Tuesday, as the Japanese currency came under pressure following negative data.

Government data showed that the consumer price index remained stable at its core value - excluding energy and food prices - a reading issued by the Bank of Japan, compared to expectations of a 0.1% rise in the index.

Japan suffers from a high number of infections with the "Corona" virus, as health sources reported that Tokyo is exposed to a second wave of infections.

The US Department of Commerce announced the launch of important discussions and consultations with high-ranking Chinese officials to calm tensions and talk about the first phase of the trade agreement concluded in mid-January.

The administration of US President "Donald Trump" is studying the emergency use of vaccine experiments by "AstraZeneca" and the University of "Oxford" before the presidential elections scheduled to be held in November.

In terms of trading, the US dollar stabilized against the Japanese yen by 07:15 GMT at 106.03, and recorded the highest price at 106.05 and the lowest price at 105.8.

Technical analysis

The dollar versus yen pair continues to fluctuate around 106.00 and is still below it. We note that the stochastic indicator continues to provide negative signals, which supports the continuation of our expectations for the downside for the coming period, targeting 105.20 initially.

Consolidation below 106.44 is important for the continuation of the suggested decline, while breaking 105.20 represents the key to the rally towards 103.65 as a next major stop.

The expected trading range for today is between 105.00 support and 106.50 resistance.

The expected general trend for today: Bearish.