The US dollar fluctuated in a tight range slipping into the US session to see its rebound from its highest since July 10, when it tested its highest since late May 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.
At 06:05 GMT, the USDJPY dropped 0.14% to 108.63 from the opening levels at 108.78, after hitting a session low of 108.56 and a three-week high of 108.95. .
We followed the Japanese economy as the third economy in the world to disclose data that will work with the reading of the Unemployment Rate Index which showed a drop to 2.3% last May and expectations at 2.4%. In the same context, Down to 1.61 from the previous reading for May and 1.62.
This was before we also saw the world's third-largest industrial manufacturing data release with a preliminary reading of industrial production, which showed a 3.6% drop from 2.0% in May, worse than the 1.7% The index itself expanded to 4.1% from 2.1% in the previous reading for May, in contrast to expectations of a decline of 2.0%.
To the Bank of Japan's decision to keep rates unchanged at 0.10% amid maintaining the asset purchase program unchanged as well as future interest rate trends. With the Bank of Japan cutting its inflation and growth forecasts for the world's third-largest economy, And is looking forward to a press conference by Bank of Japan Governor Haruhiko Kuroda in Tokyo.
On the other hand, investors are currently looking for the US economy to disclose spending and personal income data that may reflect a slowdown in personal spending growth to 0.3% from 0.4% in May, and personal income growth slowing to 0.3% from 0.5% in May, A reading of the Core Personal Consumption Expenditure Index may show growth slowing to 0.1% versus 0.2% in May.
This comes ahead of the release of the consumer confidence index, which may expand to 125.2 from 121.5 in June, coinciding with the release of housing market data with the release of existing home sales, which may indicate slowing growth to 0.3 From 1.1% in May, to the launch of the FOMC meeting today and Wednesday in Washington.
Markets are pricing opportunities for Fed monetary policy makers to cut rates for the first time in more than a decade by 25 basis points to between 2.00% and 2.25% by more than 70% and by 50 basis points to 1.75% And 2.00% by nearly 30% according to the Vedomatch tool by the CMA group. This comes ahead of the expected press conference of Federal Reserve Governor Jerome Powell
The US dollar fluctuated in a tight range slipping into the US session to see its rebound from its highest since July 10, when it tested its highest since late May 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.
At 06:05 GMT, the USDJPY dropped 0.14% to 108.63 from the opening levels at 108.78, after hitting a session low of 108.56 and a three-week high of 108.95. .
We followed the Japanese economy as the third economy in the world to disclose data that will work with the reading of the Unemployment Rate Index which showed a drop to 2.3% last May and expectations at 2.4%. In the same context, Down to 1.61 from the previous reading for May and 1.62.
This was before we also saw the world's third-largest industrial manufacturing data release with a preliminary reading of industrial production, which showed a 3.6% drop from 2.0% in May, worse than the 1.7% The index itself expanded to 4.1% from 2.1% in the previous reading for May, in contrast to expectations of a decline of 2.0%.
To the Bank of Japan's decision to keep rates unchanged at 0.10% amid maintaining the asset purchase program unchanged as well as future interest rate trends. With the Bank of Japan cutting its inflation and growth forecasts for the world's third-largest economy, And is looking forward to a press conference by Bank of Japan Governor Haruhiko Kuroda in Tokyo.
On the other hand, investors are currently looking for the US economy to disclose spending and personal income data that may reflect a slowdown in personal spending growth to 0.3% from 0.4% in May, and personal income growth slowing to 0.3% from 0.5% in May, A reading of the Core Personal Consumption Expenditure Index may show growth slowing to 0.1% versus 0.2% in May.
This comes ahead of the release of the consumer confidence index, which may expand to 125.2 from 121.5 in June, coinciding with the release of housing market data with the release of existing home sales, which may indicate slowing growth to 0.3 From 1.1% in May, to the launch of the FOMC meeting today and Wednesday in Washington.
Markets are pricing opportunities for Fed monetary policy makers to cut rates for the first time in more than a decade by 25 basis points to between 2.00% and 2.25% by more than 70% and by 50 basis points to 1.75% And 2.00% by nearly 30% according to the Vedomatch tool by the CMA group. This comes ahead of the expected press conference of Federal Reserve Governor Jerome Powell.
Technical Analysis
Yesterday, the USD / JPY pair is at 108.93 and finds strong resistance there, supported by Stochastic negativity. As we mentioned yesterday, this level represents the neckline of a double bottom pattern shown in the picture, which means that breaching it will lead the price to make further bullish correction in the short term. The following targets are 109.60 and then 110.25.
All in all, we will maintain our bullish outlook supported by SMA 50 unless 108.10 is broken and stability below it.
The trading range for today is among the key support at 108.10 and resistance at 109.50
The general trend for today is bullish.