JPYUSD analysis 10.09.2020

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 we followed on 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 exactly 06:52 AM GMT, the US dollar against the Japanese yen fell by 0.04% to 106.14 levels compared to the opening levels at 106.18, after the pair achieved its lowest level during the session's trading at 106.06 while achieving its highest at 106.30.

We have followed up on the Japanese economy, the third largest economy in the world and the third largest industrialized country in the world, the disclosure of the machinery orders index reading, which showed a 6.3% rise compared to a 7.6% decline last June, surpassing the expectations that indicated a 2.0% rise, while she explained The annual reading of the same index narrowed the decline to 16.2% compared to 22.5% in June, also surpassing expectations that indicated a contraction of the decline to 18.3%.

On the other hand, investors are currently awaiting the American economy for the release of the aid claims index reading for the past week on the fifth of September, which may reflect a decline by 43,000 requests to 838,000, compared to 881,000 in the previous weekly reading. The continuing aid for the past week, on August 29, decreased by 329,000 to 12,925,000, compared to 13,254,000.

This comes in conjunction with the disclosure of inflation data with the release of the producer price index reading, which is a preliminary indicator of inflation, which may reflect a slowdown in growth to 0.2% compared to 0.6% in July, and the core reading of the same index may also indicate a slowdown in growth to 0.2% compared to 0.5%. While the annual reading of the index may show that the deflation has shrunk to 0.3% from 0.4%, and the core annual reading reflects the stability of growth in August at 0.3%.

This comes before we witness the release of the final reading of the wholesale stocks index, which may confirm a decline of 0.1%, unchanged from the previous initial reading for the month of July, and compared to a decline of 1.4% last June, otherwise, according to the latest figures issued by the World Health Organization The number of cases infected with the Coronavirus has increased to nearly 27.5 million, and 894,983 people have died in 216 countries, and research and experiments are still being conducted with the aim of reaching a vaccine.

Technical analysis

The dollar versus the yen achieved slight gains yesterday to move above the 106.00 barrier, and we note that the stochastic indicator shows clear overbought signs now, in addition to a negative crossover sign that we expect the price to resume negative trades during the coming sessions, so that the bearish trend scenario remains valid and effective in the long run. The intraday and the short, which its next main target is at 105.20.

Note that the continuation of the suggested bearish wave depends on stability below 106.44.

The expected trading range for today is between 105.40 support and 106.50 resistance.

The expected general trend for today: Bearish.