USDJPY analysis

The US dollar fluctuated in a narrow range that tends to decline during the Asian session, to witness the lowest since the beginning of September against the Japanese yen, following the developments and economic data that they followed on the Japanese economy and on the cusp of economic developments and data expected today, Wednesday, by the US economy, the largest economy in the world.

At 07:10 AM GMT, the US dollar against the Japanese yen fell by 0.10% to 105.92 levels compared to the opening levels at 106.03, after the pair achieved its lowest level since the beginning of this month at 105.83, while it achieved its highest during the session's trading at 106.06.

We have followed up on the Japanese economy, the third largest economy in the world and the third largest industrialized country in the world, revealing the annual reading of the M-2 money supply index, which showed an acceleration of growth to 8.6% compared to 7.9% last July, surpassing expectations that indicated an acceleration of growth. To 8.2%, and that came before we saw the annual reading of the machinery orders index showed the decline, to 23.3%, compared to 31.1% in July.

Other than that, markets are looking to succeed Japanese Prime Minister Shinzo Abe, who recently suddenly announced his resignation from office for health reasons, and is among the potential candidates to succeed Abe, former Prime Minister Yoshihide Suga's secretary in addition to former Japanese Foreign Minister Fumio Kishida and former Defense Minister Shigeru Ishiba. Suga is considered the favorite to win the elections scheduled for September 14th.

On the other hand, investors are currently awaiting the American economy to release a statistical reading on employment opportunities and job turnover, which may reflect an increase to about 6.05 million compared to about 5.89 million last June, and this comes in the wake of the labor market data showed at the end of last week, a decline The unemployment rate came to 8.4% from 10.2% in July, surpassing expectations for a decline to 9.8% at the time.

In the same context, last Friday's reading of the employment change index for sectors other than agricultural showed about 1,371,000 jobs added compared to 1,734,000 added jobs, which was revised from about 1,763,000 jobs added in July, while the average hourly income index reading reflected an acceleration Growth to 0.4% versus 0.1%, contrary to expectations that indicated stability at zero levels.

Technical analysis

The dollar versus the yen provided noticeable negative trades yesterday, to move away from 106.44, reinforcing expectations that the bearish trend will continue during the upcoming period, which targets 105.20 as the next major station.

Consequently, the negative scenario will remain valid and effective with support from moving below the EMA 50, reminding you that the continuation of the bearish wave depends on stability below 106.44.

The expected trading range for today is between 105.00 support and 106.44 resistance.

The expected general trend for today: Bearish.