USDJPY analysis 21.09.2020

The US dollar fluctuated in a narrow range tilted towards a decline during the Asian session, to witness its lowest since late July, when it tested its lowest since March 12 against the Japanese yen amid scarce economic data at the beginning of this week by the Japanese economy due to the observance day holiday The elderly in Japan on Monday, on the cusp of the upcoming speech of Fed Governor Jerome Powell and members of the Federal Open Market Committee.

At 06:50 a.m. GMT, the US dollar against the Japanese yen fell by 0.20% to 104.31 levels compared to opening levels at 104.52, after the pair achieved an eight-week low at 104.27, while it achieved its highest in the session at 104.58, Knowing that the pair started trading on a downward gap after closing last week’s trading at 104.57.

Investors are currently awaiting what Fed Governor Jerome Powell will talk via satellite, along with the rest of the FOMC members, about setting the rules for the Community Reinvestment Act, before we witness the Fed’s Deputy Governor and a member of the Federal Market Committee. The Open Lyle Brainard satellite on the Urban Institute Community Reinvestment Act.

Up to the participation of the President of the Federal Reserve Bank of New York and a member of the Federal Open Market Committee, John Williams, in a panel discussion entitled "Economic Justice: Examining the Financial Burden of Inequality and Seeking a Fair Recovery from Covid-19" in the virtual conference of the Black Caucus Foundation of the US Congress, also via satellite.

Technical analysis

The dollar versus yen pair continues to crawl to the downside, reaching the edge of the 104.00 barrier, which supports the continuation of our bearish expectations in the intraday and short term basis, supported by the negative pressure that continues to provide the SMA 50, reminding you that our next main target reaches 103.65.

The breach of 104.20 will make it easier for the price to achieve the aforementioned target, while the continuation of the expected bearish trend requires stability below 105.20.

The expected trading range for today is between 103.50 support and 105.00 resistance.

The expected general trend for today: Bearish.