JPYUSD analysis 15.09.2020

The US dollar fluctuated in a narrow range that tends to decline during the Asian session against the Japanese yen amid scarcity of economic data by the Japanese economy and on the cusp of economic developments and data expected today, Tuesday, by the US economy, the largest economy in the world, which includes the start of the meeting of the Federal Open Market Committee in Washington. .

At exactly 06:51 AM GMT, the US dollar against the Japanese yen fell by 0.07% to 105.66 levels compared to the opening levels at 105.72, after the pair achieved its lowest level during the session's trading at 105.61, while it achieved its highest at 105.75.

Investors are currently awaiting the US economy to see the release of the import price index reading, which may indicate a slowdown in the pace of growth to 0.5% compared to 0.7% in the previous reading for the month of July, while the annual reading of the same index may reflect a contraction of the decline to 1.0% compared to 3.3%, This comes in conjunction with the release of the New York industrial index, which may reflect an expansion to a value of 6.2, compared to 3.7 in August.

This comes before we witness by the largest industrial country in the world the disclosure of industrial sector data with the release of the Industrial Production Index, which may reflect a slowdown in the pace of growth to 1.2% compared to 3.0% in the previous reading for July, while the reading of the utilization rate index may clarify Energy growth accelerated, to 71.7%, from 70.6% in July.

In order to start the activities of the Federal Open Market Committee meeting September 15-16 via satellite, during which the short-term reference rates for the fifth meeting in a row are expected to remain at between zero and 0.25%, and to reveal the expectations of the members of the Federal Commission for growth rates Inflation and unemployment in addition to the future of interest rates for the next three years.

This comes before we witness tomorrow the press conference of Fed Governor Jerome Powell, which he will hold 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 meetings Hall has adopted the Federal Reserve's new inflation policy, targeting average inflation 2% above for some time.

Technical analysis

The dollar versus yen managed to break the 106.00 level to push down on its way towards our first awaited negative target at 105.20, which supports the continuation of our bearish expectations in the intraday and short term, noting that breaking the target will extend the downside wave to reach 103.65 as a next major station.

Consequently, the bearish trend scenario will remain valid and effective supported by the negative pressure formed by the EMA50, noting that stability below 106.44 is important for the continuation of the expected decline.

The expected trading range for today is between 104.80 support and 106.20 resistance.

The expected general trend for today: Bearish.