JPYUSD analysis 14.09.2020

The US dollar fluctuated in a narrow range that tends to decline during the Asian session against the Japanese yen after the economic developments and data that were followed on Monday by the Japanese economy and with an eye for the results of the Japanese elections to determine the new Japanese prime minister to succeed the prime minister who recently resigned for health reasons, Shinzo Abe amid scarce economic data At the start of this week by the US economy the largest in the world.

At exactly 06:57 am GMT, the US dollar against the Japanese yen fell by 0.09% to 106.05 levels compared to the opening levels at 106.15, after the pair achieved its lowest level during the session's trading at 106.01 while it achieved its highest at 106.18, knowing that the pair The session started with a bearish gap after ending last week’s trading at 106.16 levels.

We have followed up on the Japanese economy, the second largest industrial country in Asia and the third largest industrial country in the world, revealing industrial sector data, with the release of the final reading of the Industrial Production Index, which showed an increase of 8.7% compared to the initial reading for July and expectations of a rise of 8.0% and against a rise of 1.9 Last June, while the final annual reading of the same index showed a decline of 15.5% compared to the initial reading and expectations of a 16.1% decline.

In the same context, we also monitored about the second largest economy in Asia and the third largest in the world, the issuance of the energy utilization rate, which showed an acceleration of growth to 9.6% compared to 6.2% in June, in contrast to expectations that indicated a slowdown in growth to 0.2%, in conjunction with The also disclosure of the reading of Japan's Tertiary Industrial Index, which showed a decline of 0.5% against a rise of 9.0% in June, contrary to expectations that indicated a slowdown in growth to 0.6%.

In another context, the market is currently looking forward to the results of the elections of the ruling Liberal Democratic Party in Japan to choose the leader of the party that will succeed the Japanese Prime Minister Shinzo Abe, who recently announced surprisingly his resignation from his post for health reasons, and the Chief Cabinet Secretary Yoshihide Suga is the best candidate to succeed Abe. It is followed by former Japanese Foreign Minister Fumio Kishida, then former Defense Minister Shigeru Ishiba.

On the other hand, the markets are looking forward to tomorrow, Tuesday, the start of the activities of the FOMC meeting September 15-16 via satellite in Washington, through which it is expected that the short-term reference interest rates for the fifth meeting will remain between zero and 0.25%. In conjunction with the disclosure of the committee members ’expectations for growth rates, inflation and unemployment in addition to the future of interest rates for the next three years.

Up to the press conference to be held by Federal Reserve Governor Jerome Powell tomorrow, Wednesday, precisely half an hour after the end of the meeting, to comment on the decisions of the committee that previously adopted many stimulus programs to support the economy in the face of the repercussions of the Corona pandemic, and it is mentioned that Powell stated on the sidelines of the Jackson Hole meetings The Federal Reserve adopts a new inflation policy, targeting average inflation 2% above for some time.

Technical analysis

The narrow range dominates the recent trading of the dollar against the yen, which continues to fluctuate around the EMA50, and therefore, there is no change to the bearish trend scenario that depends on stability below 106.44, waiting for the breach of 106.00 to confirm the rally towards 105.20, which represents our next main target.

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

The expected general trend for today: Bearish.