The US dollar fluctuated in a narrow range slipping into the US session to see its rebound for the second session of its highest since July 10, when it tested its highest since late May against the Japanese yen following developments and economic data followed Monday by the economy As economic data at the beginning of this week were overshadowed by the US economy, the world's largest economy.
At 05:57 GMT, the pair dropped 0.07% to 108.60, compared with the opening levels at 108.68, after reaching a low of 108.42 and a high of 108.72.
We followed the Japanese economy to reveal the seasonally adjusted quarterly retail sales, which showed stability at zero, versus 1.3% in May, in contrast to expectations of a 0.3% decline. The same annualized reading showed that growth slowed to 0.5% versus 1.3%. % In the previous annual reading for May, also surpassed forecasts that indicated a slowdown in growth to 0.2%.
This comes hours before the Bank of Japan meets Tuesday in Tokyo, where the central bank's monetary policy makers are expected to keep short-term benchmark interest rates as zero as stimulus policies and monetary easing are introduced to support the performance of the world's third-largest economy and stimulate pressure growth Inflation to reach the target of the bank at two percent.
On the other hand, markets are looking to kick off the FOMC meeting on Tuesday in Washington ahead of next Wednesday's disclosure of the decisions and directions of the Fed's monetary policy makers and the upcoming Federal Reserve Governor Jerome Powell's upcoming press conference in the shadow of expectations for interest rate cuts Federal Reserve by 25 basis points to between 2.00% and 2.25%.
Technical Analysis
The pair is showing some slight bearishness after approaching the 108.93 level, noting that Stochastic has managed to shed its negative momentum to gain a positive momentum that is expected to contribute to push the price to breach the mentioned level and then rush to achieve further gains expected in the coming period, The level mentioned is a possible neckline for a double bottom model showing its features.
From here, we continue to favor the bullishness over the short and short term, provided that the pair remains stable above 108.10, noting that the following positive targets extend to 109.60 and then 110.25.
The trading range for today is among the key support at 108.00 and resistance at 109.20
The general trend for today is bullish.