The US dollar fluctuated in a narrow bullish range during the Asian session to see its rebound for the second session in three sessions from its lowest since January 10 against the Japanese Yen following developments and economic data that followed the Japanese economy, the third largest economy in the world and on the brink of developments And economic data expected Thursday by the US economy, the largest economy in the world.
At 05:51 GMT, the USDJPY rose 0.03% to 108.43 compared to the opening levels at 108.41 after the pair reached a high of 108.54 and a low of 108.32.
The Japanese economy reported the annual reading of the Household Spending Index, which showed a slowdown in growth to 1.3% from 2.1% last March, in contrast to expectations of a 2.7% growth rate, in conjunction with an annualized reading of the median wage index. , Up from 1.3% in March, beating expectations for a decline to 0.7%. This was before we saw the reading of leading indicators, which showed a contraction of 95.5 vs. 95.9 in March, beyond expectations at 96.1.
On the other hand, investors are looking for the US economy to reveal data on the labor market, which may show the stability of unemployment rates at its lowest level in 49 years at 3.6%, unchanged from the previous reading for the month of April, amid expectations that The average hourly earnings index reflects an acceleration of growth to 0.3% versus 0.2% in April.
This is in line with the release of the Non-Farm Employment Change Index, which may indicate a slower pace of job creation to 180,000 added jobs versus 263,000 jobs in April and before we see the final reading of the Wholesale Inventories Index, 0.7%, unchanged from April's preliminary reading and 0.1% lower than in March.
Technical Analysis
USDJPY is attempting to correct the short term downside direction as it trades along a bearish trend line as shown in the attached chart. The pair is supported by the positive signals in the RSI until it reached oversold areas, For the 50-day SMA on the intraday basis. It appears that this corrective journey is nearing completion for approaching the resistance of its simple moving average.
Therefore, we expect the pair to decline in its next trading on the intraday basis, throughout the stability of the pivotal resistance 109.01, to target the level of support 107.84 again in preparation to break it.
The general trend for today is bearish.