USDJPY analysis 03.09.2020

The US dollar fluctuated in a narrow range slanting to an upside during the Asian session, to witness its retracement to the fifth session from its lowest since August 19 against the Japanese yen amid scarce economic data by the Japanese economy and on the cusp of economic developments and data expected today, Thursday, by the US economy, the largest economy. In the world.

At 06:50 am GMT, the US dollar against the Japanese yen rose by 0.14% to 106.33 levels compared to the opening levels at 106.18, after the pair achieved its highest level during the session's trading at 106.34, while it reached its lowest level at 106.14.

Investors are currently awaiting the American economy to reveal the final reading of the productivity index and the cost of one work, and it is expected that the reading of the productivity index will show a stability of growth at 7.3%, with little change from the preliminary reading for the second quarter, compared to a contraction of 0.9% in the previous reading for the first quarter, while The cost index reading shows slowing growth to 12.0% compared to 12.2% growth in the preliminary reading and versus 5.1% growth in the first quarter.

This comes in conjunction with the release of the aid requests index reading for the past week on August 29th, which may reflect a decline of 51 thousand applications to 955 thousand applications compared to 1,006 thousand applications in the previous weekly reading. Also, the reading of continuous aid requests for last week may appear on the 22nd of August. Last month, a decrease of 535 thousand requests to 14 million requests compared to 14,535 thousand requests in the previous weekly reading.

This also comes in conjunction with the release of the merchandise trade balance reading, which may explain the widening of the deficit to a value of $ 58.2 billion compared to $ 50.7 billion in June, and before the release of the final reading of the Institute for Service Provisioning Index by Markit from the United States, which may reflect the stability of the expansion at A value of 54.8, unchanged from what it was in the preliminary reading for the past month, and compared to a widening of 50.0 in July.

Up to uncovering the index reading of the Service Provisioning Institute, whose importance lies in the fact that the service sector represents more than two-thirds of the GDP of the United States, which may explain the contraction of the expansion to a value of 57.0 compared to 58.1 in July, and it is mentioned that the US economy reversed worse in the second quarter. His performance since the Great Depression in the 1930s due to the Corona pandemic and recently reflects signs of recovery and that the worst is over.

Technical analysis

The dollar against the yen is hovering around the main resistance line that appears in the above chart, and the stochastic indicator continues to provide negative signals, to support the chances of resuming the expected bearish trend in the intraday and short term, whose main targets begin with testing 105.20, reminding you of the importance of holding below 106.44 to continue the decline The proposed.

The expected trading range for today is between 105.40 support and 106.60 resistance

The expected general trend for today: Bearish