USDJPY analysis 28.09.2020

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 amid scarcity of economic data at the beginning of this week by the Japanese economy and its counterpart the US economy, the largest economy in the world, and with an eye to talk Member of the Federal Open Market Committee and Cleveland Federal Reserve Chair Loretta Meester later Monday.

At exactly 06:56 am GMT, the US dollar against the Japanese yen fell by 0.28% to 105.28 levels, after the pair achieved its lowest level during the session's trading at 105.27, while the pair achieved its highest at 105.69, knowing that the pair started trading The session is in a bearish gap after closing last week’s trading at 105.58 levels.

Investors are currently awaiting the American economy for what will be revealed by a member of the Federal Open Market Committee and President of the Cleveland Federal Reserve, Loretta Meester, about equality in a webinar hosted by the African American Chamber of Commerce in Pennsylvania, and the markets are looking forward this week to the speech of many members of the committee Federal Open Market.

Otherwise, the markets are looking forward to tomorrow, Wednesday, to reveal the final reading of the GDP index, which may confirm the contraction of the largest economy in the world 31.7%, unchanged from the previous preliminary reading for the second quarter and against a contraction of 5.0% in the previous reading of the last first quarter, as it may confirm. The final reading of the same index measured by prices showed a shrinkage of 2.0%, unchanged from the previous initial reading, and against a growth of 1.4% in the first quarter.

This coincides with the disclosure of preliminary data for the US labor market with the release of the index of change in private-sector jobs, which may reflect the acceleration of job creation to 650,000 jobs compared to 428,000 jobs last August, and this comes hours before the disclosure next Friday For the monthly report on employment except agricultural and unemployment rates in addition to the average hourly income for the month of September.

Technical analysis

The dollar's rise against the yen stopped at the resistance line that appears in the picture, accompanied by the emergence of negative signals through the stochastic indicator, which pressures the price to decline now and head towards testing the support floor that was formed at 105.20 after its previous breakout, at which the moving average 50 meets to add more. Power to it.

Thus, we are facing a conflict between technical factors that makes us prefer to stay neutral until we get a clearer signal for the next trend, noting that breaching the resistance 105.60 will push the price to resume the suggested positive scenario in our last report and head towards 106.44 mainly, while breaking the support 105.20 will put the price. Again, under negative pressure, heading towards 103.65 areas in the near term.

The expected trading range for today is between 104.60 support and 106.20 resistance.

The expected trend for today: depends on the levels mentioned in the report.