USDJPY analysis 14.10.2020

The US dollar fluctuated in a narrow range that tends to decline during the Asian session, to witness its retracement to the third session in five sessions from its highest since September 14 against the Japanese yen, following the developments and economic data that they followed on the Japanese economy and on the cusp of economic developments and data expected today, Wednesday. The American economy was before the largest in the world.

At exactly 06:54 am GMT, the US dollar against the Japanese yen fell by 0.03% to 105.45 levels compared to the opening levels at 105.48, after the pair achieved its lowest level during the session's trading at 105.31, while the pair achieved its highest at 105.52.

We have followed up on the Japanese economy, the second largest industrial country in Asia and the third largest industrial country in the world, revealing industrial sector data with the release of the final reading of the Industrial Production Index, which showed a 1.0% rise compared to the preliminary reading for August and expectations for a rise of 1.7% and an increase of 8.7 Last July, while the final annual reading of the same index showed a decline of 13.3% compared to the initial reading and expectations of a 13.3% decline.

On the other hand, investors are currently waiting for the US economy to release a reading of the producer price index, which is a preliminary indicator of inflation, which may reflect a slowdown in growth to 0.2% compared to 0.4% in August. While the annual reading of the index may show a growth of 0.2% against a contraction of 0.2%, and the substantial annual reading reflects an acceleration of growth to 0.9% versus 0.6%.

And this comes before we witness the speech of the members of the Federal Open Market Committee via satellite, each of the Vice Governor of the Federal Reserve, Richard Clarida, who will talk about the economic outlook and monetary policy at the annual meeting of the Institute of International Finance, and Deputy Governor of the Federal Reserve Randall Quarles, who will participate in a panel discussion On financial stability in a seminar hosted by the Systematic Risk Board.

All the way to the US Treasury Department's disclosure of the federal budget reading, which may reflect a narrowing of the deficit to a value of $ 123.3 billion compared to $ 200.1 billion in August, before we witness the Federal Reserve Vice Governor Quarles' speech again with a member of the Federal Reserve and Chairman of the Bank of Dallas Federal Reserve Robert Kaplan on financial regulation in the Monetary Policy Hypothetical Series at the Hoover Institution and Kaplan's later talk on economic expectations in monetary policy in the hypothetical Town Hall hosted by the Texas Tribune.

Technical analysis

 The dollar against the yen provided slight positive trading yesterday, to test the SMA 50, which formed a good resistance against the price, to decline again and approach the level of 105.20 now, noting that the stochastic indicator is presenting a negative crossover signal now, waiting for the price to be stimulated to break the aforementioned level and open the way for Rush towards our expected targets at 104.40 then 103.65.

From here, our expectations for the downside movement will remain valid and effective on the condition that the price maintains stability below 105.70.

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

The expected general trend for today: Bearish