The US dollar fluctuated in a narrowly bullish range during the US session to see its rebound for the second consecutive session from its lowest level since Jan. 3 against the Japanese yen amid a lack of economic data earlier this week by the Japanese economy, the world's third largest economy and counterpart The US economy is the world's largest economy on Monday.
At 06:22 GMT, the USDJPY rose 0.09% to 107.42 from the opening level at 107.39 after recording the highest level at 107.48 and the lowest at 107.27. The pair started the week at a bullish price gap after closing last week at 107.32.
Last week, Japan's Deputy Finance Minister Masatsu Asakawa said improved trade in services could help the US current account position, saying he did not like to look at the trade imbalance on a bilateral level only, adding that exchange rate volatility was not positive, As he pointed out that there are strong movements in the markets.
Asakawa said that the Japanese Ministry of Finance continues to monitor the markets closely for the time being, noting that it is not possible to predict the direction of the dollar pair against the yen, adding that the Fed has not decided after the rate cut, adding that it supports the monetary policy followed by Before the Bank of Japan, which will act appropriately if currency market movements are violent.
Otherwise, markets are looking ahead to Tuesday's minutes of the BoJ meeting on June 20, in which the Bank of Japan's monetary policy makers agreed to keep interest rates at 0.10%, which was expected in the markets, The release of the monetary policy statement, which addressed the growing concern of external risks and threatens to impede the fragile economic recovery.
On the other hand, investors are looking forward to what Fed Chairman Jerome Powell will talk about the economic outlook and monetary policy at the Council on Foreign Relations in New York. The global markets are also looking forward to the upcoming meeting between US President Donald Trump and his Chinese counterpart Xi Jinping By the end of this week during the events of the G20 summit in Japan.
Technical Analysis
USDJPY pair has retested the previously breached 107.80 level and rebounded from there. The downside movement is valid and valid for the coming sessions, consistently within the descending channel shown on the chart above, supported by stochastic negativity, awaiting 106.75 and 106.00 which represent our targets. The following main.
Keep in mind that a break of 107.80 will push the price to test the 108.50 areas before any new attempt to decline.
The trading range for today is expected among the key support at 106.50 and the resistance at 107.80.
The general trend for today is bearish.