The dollar fell during the Asian session to see its rebound for the second session of its highest since June 11 against the Japanese yen amid a lack of economic data by the Japanese economy earlier this week and on the eve of developments and economic data expected Tuesday by the US economy, the largest economy the world.
At 05:54 am GMT, the pair dropped 0.23% to 108.29 compared with the opening levels at 108.55 after the pair reached a low of 108.26 and a high of 108.60.
Investors are currently waiting for the US economy to release data on the housing market with the Housing Starts and Building Permits readings for May, where we expect to see about 1,290,000 building permits versus 0.6% at 1,296K in April , And the start-up homes may show little stability at 1,235,000 homes, down from 5.7% in April.
This comes in line with the launch 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 for growth rates, inflation and unemployment in addition to To the future of interest rates for the next three years, before the events of the press conference of Federal Reserve Governor Jerome Powell on Wednesday.
Technical Analysis
USDJPY is starting to trade negatively today to attack the support of the bullish intraday channel that appears in the image and break it, to activate the negative impact of the bearish flag pattern formed by this channel, which supports our expectations of continuing the bearish trend effectively during the coming sessions. 106.75 as the next main target.
Therefore, the bearish trend will remain valid for the coming period unless the breach of 108.80 is breached above.
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.