USDJPY analysis 06.08.2002

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 July 24 against the Japanese yen, amid a scarcity of economic data by the Japanese economy and before the developments and economic data expected today, Thursday, by the US economy. Economy in the world.

At exactly 05:54 AM GMT, the US dollar against the Japanese yen declined by 0.10% to 105.49 levels compared to the opening levels at 105.60 after the pair achieved its lowest level during the session's trading at 105.46, while it achieved its highest at 105.62.

Investors are currently awaiting the American economy to see the release of the aid claims index reading for last week at the beginning of August, which may reflect a decrease of 24 thousand requests to 1,410 thousand applications compared to 1,434 thousand applications in the previous reading. From July 25, a decrease of 298,000 applications to 16,720,000, compared to 17,018,000 applications in the previous reading.

This comes, before we witness the participation of a member of the Federal Open Market Committee and Chairman of the Dallas Federal Reserve, Robert Kaplan, in a panel discussion entitled "Economic Recovery and Challenges in the United States" in a hypothetical event hosted by the Official Forum of Monetary and Financial Institutions, as the markets look forward to what will be the outcome of the talks. US lawmakers about the virus relief package anticipated by Congress.

Technical analysis

The dollar versus the yen pair stabilizes around 105.20, and the price is under the negative pressure that the 50 MA is now forming, while the stochastic oscillator begins losing positive momentum.

Thus, these factors encourage us to maintain our expectations for the bearish trend, whose targets start with a breach of 105.20 to open the way towards 103.65 as a next station, reminding you of the importance of holding below 106.44 for the expected decline.

The expected trading range for today is between 104.70 support and 106.00 resistance

The expected general trend for today: Bearish