JPYUSD analysis 09.10.2020

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 14 against the Japanese yen after the developments and economic data that they followed on the Japanese economy and on the cusp of developments and economic data expected today, Friday, by the US economy. Economy in the world.

At 07:11 AM GMT, the US dollar against the Japanese yen decreased by 0.10% to 105.92 levels compared to the opening levels at 106.03, after the pair achieved its lowest level during the session's trading at 105.81, while the pair achieved its highest at 106.04.

We have followed up on the Japanese economy, the release of the annual household spending index reading, which showed a contraction of the decline to 6.9%, compared to 6.9% last July, contrary to expectations that indicated a contraction of the decline to 6.6%. This came in conjunction with the annual average income reading showed that the decline decreased to 1.3% compared to 1.5%, which was revised from a 1.3% decline in July, also worse than expectations that indicated a decrease in the decline to 1.2%.

On the other hand, investors are currently awaiting the US economy the release of the final reading of the wholesale inventories index, which may confirm an increase of 0.5%, unchanged from the previous initial reading for the month of August and against a decline of 0.3% last July. Otherwise, attention is drawn to Markets for any developments regarding the chances of reaching a second stimulus package by the Republicans and Democrats of US policy in the shadow of the tension and attraction between them.

Technical analysis

The dollar against the yen pair starts today's trading with a bearish tendency to move below 106.00, affected by the negativity of the stochastic indicator, which is getting rid of its negative momentum to approach the oversold areas now, while the MA 50 continues to provide positive support for the price.

Thus, these factors encourage us to continue suggesting the bullish trend for the upcoming period, which targets 106.44 as a first stop, reminding you of the importance of holding above 105.20 to continue the suggested rise.

The expected trading range for today is between 105.20 support and 106.60 resistance.

The expected general trend for today: Bullish.