The US dollar fluctuated in a narrow range, tilted towards a decline during the Asian session against the Japanese yen, amid scarce economic data on Thursday by the Japanese economy and also scarce economic data by the US economy due to the Thanksgiving holiday in the United States.
At exactly 06:55 am GMT, the US dollar against the Japanese yen fell by 0.11% to 104.34 levels compared to the opening levels at 104.46, after the pair achieved its lowest level during the session's trading at 104.26, while it achieved its highest at 104.48.
We have just followed up on the disclosure of the minutes of the Federal Open Market Committee meeting held on November 4-5, in which monetary policy makers at the Federal Reserve decided to keep interest rates at their lowest rates ever, between zero and 0.25%. Amidst stressing the importance of fiscal stimulus policy to support the economy and discussing the possibility of increasing asset purchases to support the economy in its recovery from the Corona pandemic.
On the other hand, we followed last Monday the announcement of the US Public Services Administration that Joe Biden had won the 2020 US presidential elections, to become the Democratic Party’s candidate for the forty-sixth US president to succeed Republican President Donald Trump, whose term ends on January 20 of next year 2021. That gave Trump the green light for the Services Administration to begin the immediate process of transferring power to the Biden administration.
We also followed Tuesday the report on the fact that Biden is planning to nominate former Federal Reserve governor Janet Yellen for the position of Treasury Secretary, in the wake of the rare clash that occurred between the Treasury Department under the Trump administration with the Federal Reserve over the extension of the Federal Reserve’s pandemic emergency lending program, especially after Treasury Secretary Stephen Mnuchin refused to extend the emergency loan programs created with the Federal Reserve.
Technical analysis
The dollar versus yen pair shows quiet negative trading to start pressure on the EMA50, which supports the continuation of the expected bearish trend scenario for the upcoming period, whose targets start at 103.65, reminding you that breaking this level will extend the downside wave to 103.00 directly.
We point out that stability below 104.65 is important to achieve the suggested targets, as breaching it will lead the price to achieve new intraday gains targeting a test of 105.20 before any new negative attempt.
The expected trading range for today is between 103.50 support and 105.00 resistance
The expected general trend for today: Bearish