JPYUSD analysis 27.08.2020

The Japanese Yen stabilized negatively against the US dollar in the wake of the industrial activity data, which rose less than expected.

Markets are closely watching the speech of Federal Reserve Chairman Jerome Powell in the Jackson Hole meetings to talk about the most prominent challenges facing the US economy.

Powell will shed light on monetary policy and the Central Bank's efforts to support the economy and return it to the path of recovery from the effects of the "Corona" pandemic.

Japanese government data showed that the index of industrial activity in Japan rose by 6.1% last month, while analysts' expectations indicated a rise of 6.3%.

In terms of trading, the US dollar stabilized against the Japanese yen by 06:55 GMT at 106.02, and recorded the highest price today at 106.07, while the lowest price was recorded at 105.8.

Technical analysis

The dollar versus the yen bounced down strongly after testing the resistance that appears in the image, for the price to resume its descending path and head towards a possible visit to the level of 105.20, which represents our first main leg, awaiting further decline today.

From here, the bearish trend scenario will remain valid and effective for today, supported by moving below the MA 50 now, noting that the continuation of the descending wave requires stability below 106.44 - 106.55 levels.

.The expected trading range for today is between 105.20 support and 106.55 resistance

The expected general trend for today: Bearish.