The US dollar fluctuated in a tight range slipping into the US session to see its rebound to its second highest session since July 10, when it tested its highest since late May, promising the first weekly gain in three weeks and the best weekly performance in four Months ahead of the Japanese yen following the developments and economic data that followed the Japanese economy and on the eve of developments and economic data expected Friday by the US economy, the largest economy in the world.
At 06:53 GMT, the pair dropped 0.03% to 108.60, compared to the opening levels at 108.63, after recording a low of 108.56 and a high of 108.74.
We have followed the Japanese economy to release inflation data with the Tokyo Consumer Price Index (CPI) reading, which showed a slowdown in growth to 0.9% from 1.1% in June, below expectations of 1.0%, while the core annual reading of the index itself, excluding food Fresh fruits, excluding fresh food and energy, have stabilized growth of 0.9% and 0.8%, excluding expectations of 0.8% and 0.7%.
On the other hand, investors are currently waiting for the US economy to disclose the preliminary reading of GDP for the second quarter, which may show slower growth of the world's largest economy to 1.8% compared to 3.1% in the first quarter, while may reflect the preliminary reading of GDP measured At prices for the last quarter, growth accelerated to 4.0% from 0.9% in the first quarter.
Technical Analysis
The USDJPY rallied significantly yesterday to near our awaited first target of 108.93, which represents 38.2% Fibonacci retracement of the bearish wave shown in the image, and the price is positively supported by the SMA 50, supporting the continuation of the upside move to breach this level and the extension of the wave Corrective correction to reach 109.60 as a next stop.
Therefore, we expect the bullishness to continue in the coming sessions unless the 108.10 level is broken and the daily closing below it.
The trading range for today is expected among the support at 108.00 and the resistance at 109.40
The general trend for today is bullish.