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USDJPY analysis 04.12.2020

The US dollar fluctuated in a narrow, bullish range during the Asian session against the Japanese yen, amid scarce economic data from the Japanese economy and on the cusp of economic developments and data expected on Friday by the US economy, the largest economy in the world.

At 07:23 AM GMT, the US dollar against the Japanese yen rose by 0.04% to 103.88 levels compared to the opening levels at 103.84, after the pair achieved its highest level during the session's trading at 103.99, while it achieved the lowest level at 103.74.

Investors are currently awaiting the US economy to disclose labor market data with the release of the employment change index reading for sectors other than agricultural, which may reflect 500,000 jobs added compared to 638,000 jobs added last October, while the average income index reading in At the time, growth stabilized at 0.1% in November, with the unemployment rate reading showing a decline to 6.8% from 6.9%.

This comes in conjunction with the release of the merchandise trade balance reading, which may explain the widening of the deficit to a value of $ 64.7 billion, compared to $ 63.9 billion last September, and before we witness the speech of Deputy Governor of the Federal Reserve and a member of the Federal Open Market Committee, Michael Bowman, about banking services. Community and FinTech at an online event hosted by the Independent American Banking Community.

Markets are also looking forward to the release of the factory orders index reading, which may show a slowdown in growth to 0.8% compared to 1.1% in September. This came amid widespread expectations that lawmakers will also pass a $ 1.4 trillion budget to avoid a government shutdown on the 11th of this month.

Technical analysis

  

The dollar versus the yen traded with strong negativity yesterday, to succeed in achieving our first awaited target at 103.65, waiting for further decline to break this level and confirm the extension of the bearish wave towards 103.00 as a next negative station.

Consequently, the downside scenario will remain expected for the upcoming period, keeping in mind the importance of holding below 104.76 for the continuation of the suggested decline.

The expected trading range for today is between 103.00 support and 104.50 resistance

The expected general trend for today: Bearish

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