JPYUSD analysis 24.09.2020

The US dollar fluctuated in a narrow range that tends to decline during the Asian session, to witness its retracement of the second session from its high since September 15 against the Japanese yen following the developments and economic data that they followed on the Japanese economy and on the cusp of developments and economic data expected today, Thursday, by the US economy, which Actions for the second half include the semiannual testimony of Fed Governor Jerome Powell and US Treasury Secretary Stephen Mnuchin to Congress in Washington.

At 07:17 AM GMT, the US dollar against the Japanese yen decreased by 0.07% to 105.32 levels compared to the opening levels at 105.40, after the pair achieved its lowest level during the session's trading at 105.29, while it achieved its highest at 105.48.

The Bank of Japan unveiled the minutes of its meeting held on July 14-15, during which it decided to keep interest rates negative at 0.10%, while also staying committed to directing the 10-year government bond yield at zero and confirming that it will be taken. Additional steps for monetary easing without hesitation if necessary, and this came before the Japanese central bank unveiled the annual core reading of the consumer price index, which showed stability at zero levels, with little change from what it was in last July.

On the other hand, investors are currently awaiting the US economy for the release of the aid claims index reading for the past week on September 18th, which may reflect a decline of 15,000 requests to 845,000 applications compared to 860,000 requests in the previous weekly reading. The continuing aid for the past week, on the 11th of this month, decreased by 289 thousand applications to 12,339 thousand applications compared to 12,628 thousand applications.

This coincides with the launch of the second half of the bi-annual certification of Federal Reserve Governor Jerome Powell as well as with Treasury Secretary Stephen Mnuchin before the Senate Banking Committee on the "CARES" Act, and this comes hours after Powell testified before the House of Representatives And through which he threw the ball in the Congress court to provide support to companies affected by the aftershocks of the Corona pandemic.

In another context, the markets are looking to reveal the housing market data with the release of the new home sales index reading, which may indicate a 4.0% decline to about 890 thousand homes compared to a 16.6% rise at 901 thousand homes in July, leading to the speech of the Federal Open Market Committee member and chairman New York Federal Reserve John Williams Opening remarks at the New York Fed conference on economic inequality.

Technical analysis

The dollar versus yen pair achieved a clear breach of 105.20 and settled above it, which leads the price to achieve more expected gains during the coming period, paving the way for heading towards 106.00 - 106.44 levels as the next major stops.

Therefore, a bullish bias will be expected for today, supported by moving above the SMA 50, bearing in mind that breaking 105.20 will stop the suggested ascend and pressurize the price to return to the main bearish path again.

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

The expected general trend for today: Bullish.