USDJPY analysis 15.10.2020

The US dollar fluctuated in a narrow range that tends to rise during the Asian session, to witness its retracement to the second session from its lowest since the second of October, when it tested its lowest since September 23 against the Japanese yen, following developments and the economic data that followed it on the Japanese economy On the cusp of economic developments and data expected today, Thursday, by the US economy, the largest economy in the world.
 
At exactly 06:53 am GMT, the US dollar against the Japanese yen rose by 0.07% to 105.24 levels compared to the opening levels at 105.17, after the pair achieved its highest level during the session's trading at 105.30, while the pair achieved its lowest level at 105.09.
 
We have followed up on the Japanese economy, the second largest industrial country in Asia and the third largest industrial country in the world, the disclosure of industrial sector data, with the release of the Industrial Tertiary Index reading, which showed an acceleration of growth to 0.8% compared to 0.1%, which was revised from a 0.5% decline in July Last July, however, the current reading came below expectations, which indicated a rise of 1.2%.
 
On the other hand, investors are currently awaiting the American economy for the release of the aid requests index reading for the past week on the tenth of this month, which may reflect a decline of 30 thousand requests to 810 thousand requests compared to 840 thousand applications in the previous weekly reading, as the reading of aid requests may appear. Continuing for the past week, on the third of October, a decrease by 276 thousand requests to 10,976 thousand requests compared to 10.7 million requests.
 
This comes in conjunction with the disclosure by the largest industrial country in the world of industrial sector data, with the release of the Philadelphia Industrial Index reading, which may reflect a contraction of the expansion to a value of 14.4 compared to 15.0 in September. 13.9 compared to 17.0 in September, and with the release of the import price index reading, which may indicate a slowdown in growth to 0.3%, compared to 0.9% in August.
 
 
This comes before the US Treasury Department revealed a reading of the federal budget, which may reflect the contraction of the deficit to a value of $ 123.3 billion compared to $ 200.1 billion in August, and before we witness the speech of another member of the Federal Open Market Committee, Minneapolis Federal Reserve Bank Chairman Neil Kashkari. About the economic outlook, in a virtual chat by the fireplace hosted by New York University.

Technical analysis

 
The dollar versus the yen resumed its negative trading yesterday, pressuring the 105.20 level and closing the daily candle below it, which supports the continuation of our bearish expectations effectively in the intraday and short term, awaiting further decline that targets 104.40 levels then 103.65 as next major stations.
 
The SMA 50 continues to support the suggested descending wave, keeping in mind that breaching 105.60 may push the price to achieve intraday gains and visit 106.44 areas before any new attempt to decline.
 
The expected trading range for today is between 104.50 support and 105.80 resistance
 
The expected general trend for today: Bearish