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USDJPY analysis 03.06.2020

The fluctuation of the US dollar in a narrow range tilted towards the decline during the Asian session to witness its rebound from above since April 9 against the Japanese yen amid the scarcity of economic data by the Japanese economy and on the cusp of developments and economic data expected today Wednesday by the US economy, the largest economy in the world Investors are preparing to reopen global economies in exchange for escalating protests in the United States.


At exactly 05:51 am GMT, the US dollar pair fell against the Japanese yen by 0.11% to 108.56 levels compared to the opening levels at 108.68 after the pair achieved its lowest level during the trading session at 108.42, while achieving the highest in two months at 108.85.


Investors are currently awaiting by the US economy the disclosure of preliminary data for the labor market with the release of the index of change in private-sector jobs, which may reflect the loss of 9,000 thousand jobs compared to the loss of 20,236 thousand jobs last April, and this comes hours before the disclosure after tomorrow, Friday On the monthly report of jobs except agricultural and unemployment rates in addition to the hourly rate for the month of May.


This comes before we witness the final reading of the Markit Service Supply Institute index by Markit for the United States, which may reflect a contraction of shrinkage to 37.2 compared to a value of 36.9 in the initial reading for the last month and against a contraction at 26.7 in April, and before the disclosure of the index reading Factory orders, which may show a widening decline to 13.7% compared to 10.3 last March.


To reveal the reading of the Institute for Service Supply index that is important in that the service sector represents more than two-thirds of the gross domestic product of the United States, which may explain the contraction shrinkage to 44.2 compared to 41.8 in April, otherwise, according to the latest figures issued by The World Health Organization has increased the number of cases infected with the Coronavirus by more than 6.19 million, and 376,320 people have died in 216 countries.


In another context, the markets assessed the possibilities of the US military deploying in the United States to suppress the strikes and violent demonstrations in the cities over the killing of George Floyd of African descent at the hands of the American police, after the curfew failed to contain the massive protests that included violence and looting with the demonstrators taking to the streets after weeks Closings during the Corona pandemic, which caused millions to lose their jobs.


Technical analysis


The dollar pair rose against the yen strongly yesterday, breaching the 108.00 level and resuming the bullish track, reinforcing expectations of achieving more rise during the coming period, as it moves inside an intraday bullish channel that appears in the image, which supports the chances of achieving our main positive objective awaited at 109.22.


Thus, the bullish trend scenario will remain valid for the upcoming period, which may be preceded by some temporary bearish slope with the effect of stochastic negative negativity, noting that stability above 107.35 is important for the continuation of the suggested rise.


The expected trading range for today is between 107.70 support and 109.22 resistance.


Expected trend for today: bullish.

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