The US dollar fluctuated in a narrow range slipping towards the Asian session, its lowest level since January 14 against the Japanese yen following the economic developments and data that followed the Japanese economy, the third largest economy in the world and on the eve of developments and economic data expected on Monday by The US economy is the largest economy in the world.
At 06:02 GMT, the pair dropped 0.06% to 108.23 compared to the opening levels at 109.37 after the pair reached a low of 108.07 and a high of 108.40. That the pair opened this week's trading at a bullish price gap after closing the trading week and last month at levels of 108.29.
We have followed the Japanese economy to reveal the reading of the capital expenditure index, which showed growth accelerated to 6.1% compared to 5.7% in the previous reading for the fourth quarter, contrary to expectations that indicated a slowdown of growth to 2.6%, as indicated by the same indicator excluding the software accelerated growth to 6.9% versus 5.5% in the fourth quarter, also in contrast to expectations of a 2.3% slowdown in growth.
This came in conjunction with the release of the final reading of the industrial PMI Nikai by the third largest industrial world, which showed contraction contraction to 49.8 compared to the previous preliminary reading for the month of April at 49.6, exceeding expectations at 49.7, To $ 50.2 last March.
On the other hand, investors are awaiting the final reading of Markit Industrial PMI by the United States, which may reflect a widening to 50.8 compared to 50.6 in the preliminary reading last month, compared to 52.6 in April.
Before the world's largest industrial nation could see the Industrial Supply Institute index reading, which may show growth accelerating to 53.0 versus 52.8 in April, as the ISI Manufacturing Index may show growth accelerating to 51.5 versus 50.0, And coincided with a reading of the Construction Spending Index, which could reflect a rise of 0.9% versus 0.9% in March.
Technical Analysis
The USD / JPY pair continues to decline strongly to reach our 108.00 target, and we expect the downside pressure to continue to breach this level and open the way to the recent low of 106.75 in the near term.
Therefore, we will continue to bias the bearishness during the coming sessions, taking into account that the breach of 108.80 is considered the first positive key to start attempts to recover in the intraday.
The trading range for today is expected among the key support at 107.50 and the resistance at 108.80.
The general trend for today is bearish.