USDJPY analysis 11.09.2020

The US dollar fluctuated in a narrow range that tends to rise during the Asian session, to witness a rebound for the second session in three sessions from the lowest since the beginning of September against the Japanese yen, following the developments and economic data that they followed from the Japanese economy and on the cusp of developments and economic data expected today, Friday before. The American economy is the largest in the world.

At 06:59 am GMT, the US dollar against the Japanese yen rose by 0.04% to 106.17 levels compared to the opening levels at 106.13, after the pair achieved its highest level during the session's trading at 106.21, while it reached its lowest level at 106.08.

On the Japanese economy, we followed up on the release of the producer price index reading, which showed a slowdown in growth to 0.2%, in line with expectations, compared to 0.6% in July, while the annual reading of the same index showed that deflation had shrunk to 0.5%, also in line with expectations, compared to 0.9%. In conjunction with the manufacturing business sector statistic showed an expansion to 0.1 versus a contraction of 52.3 in the second quarter, beating expectations for a contraction of 36.1.

On the other hand, investors are currently awaiting the US economy to disclose inflation data with the release of the consumer price index reading, which may reflect a slowdown in growth to 0.3% compared to 0.6% in July, and the core reading of the same index may also indicate a slowdown in growth to 0.2% against 0.6%, and the annual reading of the index may reflect the stability of growth at 1.6%, while the annual core reading of the index may show an acceleration of growth to 1.2% compared to 1.0%.

Technical analysis

The dollar versus yen pair shows sideways trading and stabilizes around the moving average 50, and as long as the price is below 106.44, our bearish expectations will remain valid for the upcoming period, as breaching this level will push the price to recover and achieve gains in the intraday term, while the price needs to break the 106.00 level to facilitate the task. Heading towards our main waited target at 105.20.

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

The expected general trend for today: Bearish.