JPYUSD analysis 23.10.2020

The US dollar fluctuated in a narrow range that tends to decline during the Asian session, to witness the resumption of its rebound from its high since September 14 for the sixth session in the twelve sessions against the Japanese yen, following developments and economic data that we followed on the Japanese economy and on the cusp of developments and expected economic data today, Friday. By the US economy the largest in the world.

At 06:55 am GMT, the US dollar against the Japanese yen fell by 0.15% to 104.70 levels compared to the opening levels at 104.86, after the pair achieved its lowest level during the session’s trading at 104.67, while achieving its highest at 104.94.

We have followed up on the Japanese economy, the second largest in Asia and the third largest in the world, revealing inflation data with the release of the annual reading of the national consumer price index, which showed stability at zero levels against a growth of 0.2% last August, while the annual reading of the same index showed Excluding fresh food, the contraction narrowed to 0.3% compared to the previous annual reading and expectations for a 0.4% contraction.

In the same context, the annual reading of the CPI excluding energy and fresh food showed stability at zero levels compared to a contraction of 0.1% in August, leading to the disclosure of the preliminary reading of the manufacturing PMI by Markit from Japan, which showed the contraction of the deflation to its value. 48.0 versus 47.7 in Sep, below expectations of 48.4.

On the other hand, investors await the disclosure of the preliminary reading of the Industrial and Service Purchasing Managers' Index Markit from the United States of America, which may reflect the shrinking industrial sector expansion in the largest industrial country in the world to a value of 53.5 compared to 53.2 in the previous reading of last September, and the expansion The service sector amounted to 54.7, compared to 54.6 in September.

Technical analysis

The dollar versus yen pair begins to present negative trades now, in a sign that the price is heading to resume the expected downside trend for the upcoming period, noting that the stochastic indicator intersects negatively to motivate the price to achieve further decline today.

Thus, we will maintain our expectations for the downside, provided that it remains intact below 105.20, reminding you that our next main target will reach 103.65.

The expected trading range for today is between 103.90 support and 105.20 resistance.

The expected general trend for today: Bearish.