USDJPY analysis 01.09.2020

The US dollar fluctuated in a narrow range tilted towards a decline during the Asian session against the Japanese yen, following the developments and economic data that were followed by the Japanese economy and on the cusp of economic developments and data expected today, Tuesday, by the US economy, the largest economy in the world.

At 06:52 am GMT, the US dollar against the Japanese yen fell by 0.24% to 105.66 levels compared to the opening levels at 105.91, after the pair achieved its lowest level during the session's trading at 105.60, while it achieved its highest at 106.03.

We have followed up on the Japanese economy, the unemployment rate index reading, which showed a rise to 2.9% compared to 2.8% last June, beating expectations for a rise to 3.0%, in conjunction with the capital spending index reading showed a decline of 11.3% against a rise of 0.1%. Last first quarter, it was worse than expectations that indicated a 4.0% decline,

This came before the disclosure of the final reading of the manufacturing PMI by Markit on Japan, which showed the contraction of the contraction to a value of 47.2 compared to the initial reading for last month and expectations at 46.6 and compared to 45.2 in July, otherwise Japan is still looking for a new prime minister to succeed The Japanese Prime Minister, who announced last Friday surprisingly, abruptly resigned from his post for health reasons.

On the other hand, the markets are looking to unveil the final reading of the manufacturing PMI by Markit from the United States, which may reflect the stability of the expansion at a value of 53.6, unchanged from the initial reading for the past month and against 50.9 in July, before we witnessed it before. The US economy released the reading of the construction spending index, which showed an increase of 1.0% against a decline of 0.7% in June.

Up to the disclosure by the largest industrial country in the world of a reading of the Industrial Supply Institute index, which may show an expansion to 54.6 compared to 54.2 in July, while the reading of the same index measured by prices may indicate a decrease in the breadth to 52.0 compared to 52.3, before we witness the participation of a member of the Federal Reserve Open Market and Fed Deputy Governor Lyle Brainard in a hypothetical discussion on the economic outlook hosted by the Brookings Institution.

Technical analysis

The dollar versus the yen presented noticeable positive trades yesterday after it found strong resistance at 105.20, to test the 106.00 barrier, noting that the price begins to rebound down now, on its way to resume the suggested downside trend in our recent reports, whose targets start with breaking 105.20 to confirm the trend Towards 103.65 as a next major stop.

The stochastic indicator provides a negative crossover signal that supports the bearish expectations, bearing in mind that the continuation of the bearish wave requires stability below 106.44.

The expected trading range for today is between 104.80 support and 106.10 resistance

The expected general trend for today: Bearish