USDJPY analysis 06.10.2020

The US dollar fluctuated in a narrow range slanting to an upside during the Asian session, to witness its rebound for the second session from its high since late last September against the Japanese yen amid a scarcity of economic data at the beginning of this week by the Japanese economy and on the cusp of economic developments and data expected today, Tuesday, before The US economy is the largest economy in the world, which includes the speeches of Federal Reserve Governor Jerome Powell and the members of the Federal Open Market Committee.

At exactly 06:59 AM GMT, the US dollar against the Japanese yen fell by 0.08% to 105.67 levels compared to the opening levels at 105.74, after the pair achieved its lowest level during the session's trading at 105.62, while the pair achieved its highest at 105.79.

Investors are currently awaiting the American economy’s anticipating the release of the merchandise trade balance reading, which may explain the widening of the deficit to a value of $ 66.2 billion compared to $ 63.6 billion last July, before we witness the release of a statistical reading of job opportunities and job turnover, which may reflect Down to about 6.50 million, compared to about 6.62 million in July.

This comes, before we witness via satellite the speech of Fed Governor Jerome Powell about the economic outlook at the annual meeting of the National Association for Business Economics, and before the members of the Federal Open Market Committee each of Philadelphia Federal Reserve Bank President Patrick Harker talk about education at a seminar hosted by the Interconnection Center Global, and Dallas Fed President Robert Kaplan on America and the global economy.

Other than that, we followed yesterday the exit of US President Donald Trump from Walter Reed Military Hospital and his return to the White House after receiving treatment for the Coronavirus, and it is reported that Trump was transferred to the hospital last Friday after announcing that he and his wife Melania had contracted the coronavirus, and we would like to point out that President Trump's medical team Yesterday it was reported that the president's condition "has continued to improve" over the past 24 hours.

In another context, we followed yesterday the Democratic US House Speaker Nancy Pelosi talking with US Treasury Secretary Stephen Mnuchin over the phone to discuss opportunities for a second stimulus package to face the repercussions of the Corona pandemic, and it is expected that they will resume their talks later today, and it is reported that Pelosi noted last Sunday. "We are making progress" in the stimulus package, which includes the resumption of some unemployment benefits that were suspended in July.

We would like to point out that the Republican US President Trump called through his tweet to him Sunday via his Twitter account to "work together" and complete the stimulus package, and this comes hours after the House of Representatives approved last Thursday a bill for a fiscal stimulus package worth $ 2.2 trillion supported by Democrats However, the bill was notably rejected by Republicans by Democrats.

Technical analysis

The dollar versus yen has shown sideways and narrow-range trading since yesterday, stabilizing around 105.65, and therefore, there is no change to the bullish trend scenario that depends on stability above 105.20, pending a test of 106.44 level, bearing in mind that the current negativity of the stochastic indicator may pressure the price. To provide temporary negative trades before resuming the expected rise.

The expected trading range for today is between 105.00 support and 106.30 resistance.

The expected general trend for today: Bullish.