The US dollar fluctuated in a tight range slipping towards the Asian session to see its rebound for the third session in six sessions since the end of December against the Japanese Yen following developments and economic data that followed on the Japanese economy and on the eve of developments and economic data expected on Wednesday from Before the US economy, which includes the decisions and directions of monetary policymakers in the Fed.
At 05:57 GMT, the pair was down 0.09% at 109.30 from the opening level of 109.40 after recording a low of 109.21 and a high of 109.44.
We followed the Japanese economy's first seasonally adjusted retail sales, which rose 0.9% from 1.1% in November, beating expectations for a 0.4% rise, while the annualized reading showed slower growth to 1.3% versus 1.4%. Also surpassed forecasts for slower growth of 0.9%, before a consumer confidence reading showed a contraction of 41.9 to 42.7 in December, worse than expected at 42.4.
On the other hand, markets are currently looking for the US economy to reveal preliminary data for the labor market with the publication of the index of change in private sector jobs, which may reflect the slow pace of job creation to 180 thousand added jobs compared with 271 thousand jobs added in December, Hours before the disclosure of the monthly report of non-agricultural jobs and unemployment rates in addition to the average income per hour for the month.
Before we see the release of housing market data with the release of new home sales, which may reflect a rise of 0.8% from a 0.7% decline in November, to the event of today's decisions and directions of the Federal Open Market Committee amid expectations to keep interest on Federal funds at between 2.25% and 2.50% and move forward in reducing bond repurchase by $ 50 billion per month
Technical Analysis
USDJPY is trading near the pivotal support of 109.17, and since the price is above this level, our bullish outlook remains valid for today, noting that our main target is at 110.24.
Recall that a break of 109.16 will put the price under negative pressure with targets starting at 108.09.
The trading range for today is expected among the key support at 108.60 and the resistance at 110.24
The general trend for today is bullish