USDJPY analysis 16.11.2020

The US dollar fluctuated in a narrow range that tends to decline during the Asian session, to witness its retracement of the fourth session from its highest since October 20 against the Japanese yen following the developments and economic data that they followed on the Japanese economy and on the cusp of developments and economic data expected today, Monday, by the US economy The largest economy in the world, which includes the speech of a member of the Federal Open Market Committee, Richard Clarida.

At exactly 07:08 AM GMT, the US dollar pair fell against the Japanese yen by 0.19% to 104.58 levels compared to the opening levels at 104.78, after the pair achieved its lowest level during the session's trading at 104.49, while it achieved its highest at 104.92, knowing that The pair started the session on a rising gap after ending last week’s trading at 104.63 levels.

We have followed up on the Japanese economy the release of the preliminary seasonally adjusted GDP reading, which showed a growth of 5.0% compared to a contraction of 7.9% in the last second quarter, beating expectations for a growth of 4.4%, while the preliminary seasonally adjusted annual reading of the gross domestic product measured by prices indicated a slowdown The pace of growth to 1.1% compared to 1.3% in the second quarter, also surpassing expectations that indicated a slowdown in growth to 1.0%.

This came before we witnessed from the second largest economies in Asia and the third largest economy in the world and 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 final reading of the Industrial Production Index, which showed an increase of 3.9% compared to the initial reading for the month of September / September and expectations for a rise of 4.0% and against a rise of 1.0% last August, while the final annual reading of the same index confirmed a decline of 9.0%.

On the other hand, investors are awaiting the US economy to reveal the industrial sector data for the largest industrial country in the world with the release of the New York Industrial Index, which may reflect an expansion to a value of 13.8 compared to 10.5 last October, and this comes before we witness the participation of a member The Federal Open Market Committee and Fed Deputy Governor Richard Clarida in an online discussion hosted by the Brookings Institution.

Technical analysis

The dollar versus yen pair shows a more bearish tendency to surpass the SMA 50 and settle below it, which supports the continuation of our bearish expectations effectively in the upcoming sessions, and the path is open to achieving our main negative target at 103.65.

Stability below 105.20 is important for the continuation of the expected bearish trend, as breaching it will lead the price to achieve new gains targeting 106.00 then 106.44 before any new attempt to decline.

The expected trading range for today is between 103.70 support and 105.00 resistance

The expected general trend for today: Bearish