The US dollar fluctuated in a narrow range slipping into the US session to see its fourth session retreat since June 19 against the Japanese yen amid a lack of economic data by the Japanese economy, the third largest economy in the world and the absence of the US market on Thursday because of the holiday day Independence in the United States is the largest economy in the world.
At 06:55 GMT, the pair dropped 0.01% to 107.80, compared to the opening levels at 107.81, after reaching a low of 107.71, while the highest at 107.84.
Japanese Prime Minister Shinzo Abe on Wednesday expressed his confidence that BOJ Governor Haruhiko Kuroda could achieve his country's monetary policy objectives, adding that his government does not see the Japanese central bank's easing monetary policy as a failure, adding that the Japanese government wants to draw Bank of Japan monetary policy to be favorable with economic conditions.
On the other hand, markets are looking ahead to Friday's release of US labor market data last month, which could reflect a stable unemployment rate at 49-year low of 3.6%, unchanged from May, amid expectations that the job-sector index Excluding agriculture, job creation accelerated to 164,000 versus 75,000 jobs, and the median hourly earnings index accelerated to 0.3% from 0.2%.
This comes hours after the reading of the index of change in private sector jobs, which are preliminary data for the US labor market, the pace of job creation accelerated to 102 thousand jobs compared to 41 thousand jobs in May, below expectations for 140 thousand jobs added, The US Labor Market Report is an important report that weighs heavily on the decisions and directions of monetary policy makers at the Fed.
Technical Analysis
The USD/JPY pair is testing the resistance of the descending channel shown in the picture, and the SMA 50 meets this resistance to add more strength to it, while Stochastic loses its positive momentum and starts to provide a negative cross signal now.
Therefore, these factors encourage us to continue to hold the downside for the next period, with the next main target at 106.78, while stability below 108.10 is an important condition for its continuation.
The trading range for today is expected among the support at 107.00 and the resistance at 108.40.
The general trend for today is bearish.