USDJPY analysis 20.10.2020

The US dollar fluctuated in a narrow range that tends to rise, to witness its rebound for the third session in five sessions from its lowest since the second of October, when it tested its lowest since September 23 against the Japanese yen amid scarce economic data by the Japanese economy and on the cusp of Economic developments and data expected today, Tuesday, by the US economy, which include the speech of members of the Federal Open Market Committee.

At 06:50 AM GMT, the US dollar against the Japanese yen rose by 0.09% to 105.53 levels compared to the opening levels at 105.43, after the pair achieved its highest level since the 13th of this month at 105.62, while it achieved its lowest level during the session's trading. At 105.35.

Investors are currently awaiting the US economy to unveil the housing market data, with the release of both the Housing Starts Index and the Building Permit Index, and amid expectations that the building permits reading will reflect an increase to about 1.52 million permits compared to about 1.48 million permits in August. The home start-up reading shows an increase to about 1.45 million homes, compared to about 1.42 million homes in August.

And this comes, before we witness the speech of members of the Federal Open Market Committee and New York Federal Reserve Chairman John Williams making opening remarks in a series of webinars hosted by the New York Federal Reserve, leading to the speech of Federal Reserve Vice Governor Randall Quarles about the agenda of the Financial Stability Board in Virtual meeting hosted by the Securities Industry and Financial Markets Association.

Technical analysis

The dollar against the yen crossed the 105.45 level and settled above it, completing the formation of a bullish sub-pattern that has positive targets that reach 106.00 and may extend to 106.44, which makes us expect to witness further upside in the upcoming sessions, supported by the move above the 50 SMA.

Therefore, a bullish bias will be expected for today unless breaking 105.20 and holding below it.

The expected trading range for today is between 105.00 support and 106.20 resistance.

The expected general trend for today: Bullish.