USDJPY analysis 04.09.2020

The US dollar fluctuated in a narrow range that tends to decline, to witness its rebound for the second session from its high since August 28, when I tested its highest since the 14th of last month, while the dollar is still in the process of its first weekly gains in three weeks against the Japanese yen amid scarce data Economic data from the Japanese economy and on the cusp of economic developments and data expected on Friday by the US economy, the largest economy in the world.

At 06:59 am GMT, the US dollar against the Japanese yen declined by 0.03% to 106.16 levels compared to the opening levels at 106.19 after the pair achieved its lowest level during the session's trading at 106.06, while it achieved its highest at 106.22.

Investors are currently awaiting the US economy to disclose labor market data with the release of the employment change index reading for sectors other than agricultural, which may reflect 1,375,000 added jobs compared to 1,763,000 jobs added in July, while the average hourly income index reading may clarify. Consolidation at zero levels, compared to 0.2%. This is with the unemployment rate reading showing a decline to 9.8% from 10.2% in July.

Technical analysis

The dollar against the yen made an attempt to breach the 106.44 level, but it rebounded to the downside significantly, to settle around 106.00, thus maintaining the bearish trend scenario valid and effective for the upcoming period, which mainly targets 105.20.

Note that breaching 106.44 and holding above it will stop the expected decline and push the price to achieve new gains, reaching 107.68.

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

The expected general trend for today: Bearish.