The US dollar fluctuated in a narrow range that tends to decline during the Asian session to prepare for its third consecutive monthly losses against the Japanese yen, following the economic developments and data that they followed earlier this week on the Japanese economy and on the cusp of economic developments and data expected today, Monday, by the US economy, the largest economy. In the world.
At exactly 07:09 am GMT, the US dollar against the Japanese yen fell by 0.20% to 103.86 levels compared to the opening levels at 104.07, after the pair achieved its lowest level during the session’s trading at 103.86, while it achieved its highest at 104.16, knowing that The pair commenced the session on a descending gap after the trading session ended last week at 104.09 levels.
We followed up on the Japanese economy, revealing the industrial sector data with the release of the preliminary reading of industrial production, which showed a slowdown in growth to 3.8% compared to 3.9% last September, surpassing expectations that indicated a slowdown in growth to 2.3%, while the annual reading of the same index showed a contraction. The decline to 3.2% versus 9.0%, also surpassing expectations that indicated a widening decline to 14.5%.
This came in conjunction with the release of the seasonally adjusted reading of the retail sales index, which showed a rise of 0.4% against a decline of 0.1% in September, contrary to expectations that indicated stability at zero levels, and the annual reading of the same index showed an increase of 6.4%, in line with expectations against a decline of 8.7%. Up to the disclosure of housing market data, with the release of the annual reading of the Housing Starts Index, which showed a decline in the decline to 8.3% from 9.9% in September, surpassing expectations that indicated a decrease in the decline to 9.0%.
On the other hand, investors are currently awaiting the US economy, the largest industrial country in the world, to unveil the industrial sector data with the release of the Chicago PMI reading, which may reflect a contraction of the expansion to 59.4 compared to 61.1 in October, before the disclosure of data Housing market with the release of the Existing Home Sales reading, which may show a rise of 1.1% versus a decline of 2.2% in September.
Otherwise, markets are looking forward tomorrow, Tuesday, and the day after tomorrow, Wednesday, to Fed Governor Jerome Powell's testimony about the "CARES" Act before the US Congress, both houses of the House of Representatives and the Senate in Washington, and it is reported that Treasury Secretary Stephen Mnuchin sent a message earlier this month to the Fed Governor Powell says the $ 455 billion allocated to the Treasury under the CARES Act should be available to Congress for reallocation.
Technical analysis
The dollar versus yen pair shows new negative trades with the opening of the day to reach the outskirts of the awaited target at 103.65, and is under constant negative pressure coming from the EMA 50, which supports the chances of breaking the aforementioned level and opening the way for an extension of the downside wave in the intraday and short term, reminding you that Next target reaches 103.00.
We point out that the continuation of the expected bearish trend requires stability below 104.50.
The expected trading range for today is between 103.20 support and 104.50 resistance
The expected general trend for today: Bearish