The US dollar fluctuated in a narrow range inclined to rise during the US session to witness the highest since May 31 against the Japanese yen following developments and economic data that followed the Japanese economy and on the eve of developments and economic data expected Tuesday by the US economy, the largest economy in the world Which includes the talk of Federal Reserve Governor Graum Powell and members of the Federal Open Market Committee.
At 0614 GMT, the USDJPY rose 0.05% to 108.77 compared to the opening levels at 108.72 after the pair reached a six-week high of 108.90, while the lowest level at 108.68.
We followed the Japanese economy, the world's third-largest economy, to reveal the annual reading of the average wage index, which showed a contraction of 0.2% to 0.3% in April, compared to expectations of a 0.6% expansion. The annual reading of the bank lending index slowed growth to 2.3% from the previous year's reading for May and expectations of 2.6%.
On the other hand, investors are currently waiting for Fed Chairman Jerome Powell to present the opening remarks at the event hosted by the Federal Reserve Bank, before we also see the US economy reading a statistical employment and employment turnover that may reflect a rise to 7.51 million versus 7.44 Million in April.
Federal Open Market Committee Chairman James Pollard, who is due to deliver the opening address at the meeting of the Federal Forum on Cash and Financial Institutions in St. Louis and Federal Reserve Vice Governor Randall Quarles, who is scheduled to speak about the test Stress at the event hosted by the Boston Federal Reserve Bank.
Technical Analysis
The USD/JPY pair managed to achieve our awaited target at 108.93 and stabilizes near it. The price is still within the corrective correction channel appearing in the image, awaiting a breach of this level towards the next correction level at 109.60.
The pair may see some bearish bias on the negativity of Stochastic before resuming the expected bullish trend, noting that breaking the 108.10 level will stop the bullish corrective scenario and pressure the price to fall again.
The trading range for today is expected among the support at 108.10 and the resistance at 109.60.
The general trend for today is bullish.