JPYUSD analysis 13.10.2020

The US dollar fluctuated in a narrow range that tends to rise during the Asian session, to witness its retracement of the second session from its lowest since the fifth of October against the Japanese yen, following the developments and economic data they followed on the Japanese economy and on the cusp of economic developments and data expected today, Tuesday, by the US economy The largest economy in the world.

At exactly 06:54 AM GMT, the US dollar against the Japanese yen rose by 0.06% to 105.39 levels compared to the opening levels at 105.33, after the pair achieved its highest level during the session's trading at 105.45, while the pair achieved its lowest level at 105.28.

We have followed up on the Japanese economy the release of the annual reading of the M-2 money supply index, which showed an acceleration of growth to 9.0% compared to 8.6% last August, below expectations of 9.1%. Otherwise, we followed the statement of Bank of Japan Governor Haruhiko Kuroda at the meeting. The annual membership of the Institute of International Finance reports that the Bank of Japan is still carefully studying participation in addressing climate change while monitoring its impact on business.

On the other hand, investors are currently awaiting the US economy to reveal inflation data with the release of the consumer price index reading, which may reflect a slowdown in the pace of growth to 0.2% compared to 0.4% in the previous reading for August. The core reading of the index itself may also indicate a slowdown. The pace of growth to 0.2%, compared to 0.4% in August.

In the same context, the annual CPI reading may reflect an acceleration of growth to 1.4% compared to 1.3% in the previous annual reading for August, and the core annual reading of the same index also shows an acceleration of growth to 1.8% compared to 1.7%, and comes before We are witnessing the Treasury Department's disclosure of the federal budget reading, which may show the deficit narrowing to $ 62.3 billion compared to $ 200.1 billion in August.

Technical analysis

The dollar versus yen managed to break the support of the aforementioned rising wedge yesterday, to start pressure on the pivotal support 105.20, which supports the continuation of our expectations for the bearish trend, reminding you that breaking the aforementioned level will push the price to achieve extended negative targets starting at 104.40 then 103.65.

Thus, we await more decline during the coming sessions, keeping in mind that breaching 105.70 will push the price to initially test 106.44 areas before any new attempt to decline.

The expected trading range for today is between 104.60 support and 105.80 resistance.

The expected general trend for today: Bearish.