The US dollar rose during the US session to bounce back to its third low since June 26 against the Japanese yen amid a lack of economic data earlier this week by the Japanese economy, the world's third-largest economy and the world's largest economy.
At 05:56 am GMT, the pair rose 0.17% to 107.97 from the opening level at 107.79, after reaching the highest level at 108.07, while achieving a low of 107.70. The pair ended last week's trading at 107.71 before starting the week's trading on a bullish price gap.
Investors are waiting for what the Governor of the Bank of Japan, Haruhiko Kuroda, will say at the International Monetary Fund in Washington, DC. Otherwise, we followed Sunday the victory of Japanese Prime Minister Shinzo Abe's ruling coalition by a majority in the Japanese upper house. Which has recently escalated between Japan and South Korea and which may continue as Abe continues to lead the country.
On the other hand, markets are looking for the US economy this week to reveal the data of the housing market and the data of the service sector and industrial, before the reading of the durable goods demand index next Thursday, to reveal the end of the week for the preliminary reading of GDP for the second quarter, which may The slow pace of growth for the world's largest economy reflects 1.8 percent, the slowest pace of growth in the US economy in two years.
Technical Analysis
The USD / JPY pair is showing positive trading now to retest the previously broken neckline of the head and shoulders pattern, and the SMA 50 meets the current resistance areas to add more strength to it, in conjunction with the overbought signs of Stochastic.
Therefore, we believe that opportunities are available to trade negatively during the coming sessions, targeting 106.78 mainly, while stability below 108.10 is a key condition for achieving this target.
The trading range for today is expected among the support at 107.00 and the resistance at 108.50
The general trend for today is bearish.