JPYUSD analysis 07.09.2020

The US dollar fluctuated in a narrow range that tends to rise during the Asian session, to witness its retracement of the seventh session from its lowest since August 19, when it tested its lowest since late July against the Japanese yen following the developments and economic data that followed today, Monday, on the Japanese economy and amid Tight economic data early this week by the US economy, the largest in the world, due to the Labor Day holiday in America.

At 06:50 a.m. GMT, the US dollar against the Japanese yen rose by 0.01% to 106.28 levels compared to opening levels at 106.27 after the pair achieved its highest level during the session's trading at 106.38, while it achieved the lowest at 106.22, knowing that The pair started the session on a rising gap after ending last week’s trading at 106.24 levels.

We have followed up on the Japanese economy, the second-largest in Asia and the third-largest in the world, the disclosure of the preliminary reading of the leading indicators, which showed an acceleration of growth to a value of 86.9 compared to 83.8 last June. Other than that, Japan is still looking for a new prime minister to succeed the president. The Japanese minister who recently announced surprisingly his resignation due to health reasons.

Technical analysis

The dollar versus yen pair continues to test 106.44 and maintains its stability below it, which keeps our bearish expectations valid in the short intraday term, waiting for a negative stimulus to push the price to resume the bearish trend, whose next main target is at 105.20.

Keep in mind that failure to hold below 106.44, breaching it and holding steady with a daily close above it will stop the downside expectations and lead the price to turn higher.

The expected trading range for today is between 105.50 support and 106.70 resistance.

The expected general trend for today: Bearish.