The US dollar fluctuated in a narrow bullish range during the Asian session to see its rebound for the second session in a row since June 7 against the Japanese Yen amid a lack of economic data by the Japanese economy earlier this week and on the eve of economic developments and data expected today Monday by the US economy, the world's largest economy.
At 05:51 am GMT, the pair rose 0.05% to 108.61 compared to the opening levels at 108.48 after recording a high of 108.70 and a low of 108.39. The pair started trading this week on a low price gap after closing last week at 108.56 levels.
Investors are looking for the US economy, the world's largest industrial nation, to read the New York Manufacturing Index, which may reflect a contraction to 12.1 versus 17.8 in May before we see housing market data released with the housing index reading by the Association National home builders, which may reflect an expansion to $ 67 versus $ 66 in May.
This comes hours before the start of the meeting of the Federal Open Market Committee in Washington, which is expected to keep the interest rates between 2.25% and 2.50% for the fourth meeting in a row, as markets look to reveal the Commission's expectations of growth rates, inflation and unemployment In addition to the future interest rates for the next three years and the forthcoming press conference of Federal Reserve Governor Jerome Powell on Wednesday.
Technical Analysis
USDJPY is showing fresh positive trading near the pivotal resistance of 108.80. Stochastic is showing a large oversold area, which supports downside opportunities to resume the expected bearish trend for the coming period, targeting 108.00 initially.
Recall that breaching the mentioned level will push the price towards 106.75 as the next major station, while stability below 108.80 is an important condition for the continuation of the suggested decline.
The trading range for today is expected among the support at 107.80 and the resistance at 109.10.
The general trend for today is bearish.