Davies said, "We are very pleased with the leadership shown by Dan Watchurst and Matthew Jarvis in the first two games and we always planned to change things around in order to develop leadership and experience within the squad.
"Josh came into the squad last season as a newcomer to the system and has developed extremely well. He captained the side for 40 minutes against Exeter at our recent training camp and did very well. He has been given a chance by the Blues and at international level with us and I'm confident he and Rhys Downes are more than capable of stepping up to the plate on Friday afternoon."
Davies has made only one change and one positional to his side, with Toby Faletau making his first Six Nations start at no 8 and Morgan Allen moving to the blindside. Faletau is the son of Kuli Faletau, Tonga's most capped forward who played second row for Ebbw Vale.
Phil Davies added, "We are expecting a physical challenge from France and the back row selection, along with picking five forwards on the bench reflects that. We want to win every game but we also want to maximise the potential of every player within our squad. Around 30 players have been involved with us so far this season which bodes well for the Junior World Championship in June and looking ahead at next season.
"We've certainly seen a marked improvement in performance levels since the start of the season and a lot of that is down to the cooperation and support we've received from the Regions and Premiership clubs. We want to continue to raise the bar, starting with France on Friday. We're playing on Friday afternoon in Cardiff city centre so we're hoping Welsh fans will give us their support before the RBS 6 Nations game at 8pm."
Tickets for Wales Under 20 home games, at Cardiff Arms Park, are available now at £5 for U16s and £10 and £12 for adults. Tickets are on sale at the Cardiff Arms cafe / store, no 8 Westgate Street, online via www.wru.co.uk /tickets and from Ticketweb on tel 08444 771000.
Tickets are also on sale at Cardiff Arms Park shop 10am - 3pm.
Wales U20 v France (Friday 26 February, Cardiff Arms Park, 3.30pm)
Dan Fish (Blues); James Loxton (Blues), Owen Williams (Blues), Scott Williams (Scarlets), Kristian Phillips (Ospreys); Matthew Jarvis (Ospreys), Rhys Downes (Blues); Dan Watchurst (Dragons), Rhys Williams (Blues), Simon Gardiner (Scarlets), Macauley Cook (Blues), Lloyd Peers (Ospreys), Morgan Allen (Pontypool), Josh Navidi (capt, Blues), Toby Faletau (Dragons)
Replacements: Ieuan Davies (Glamorgan Wanderers), Rhodri Jones (Scarlets),
James Thomas (Dragons), Rhys Jenkins (Dragons), Edward Siggery (Llandovery), Gareth Davies (Scarlets), Dean Gunter (Blues) Travelling reserve: Trystan Davies