The US dollar fluctuated in a narrow range slipping into the US session to see its rebound for the second consecutive session 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. The US economy is the world's largest economy, which includes the decisions and directions of monetary policy makers in the Federal Reserve and Federal Reserve Governor Jerome Powell's press conference.
At 06:28 GMT, the USDJPY dropped 0.07% to 108.53 from the opening level at 108.61, after hitting a session low of 108.50 and a high of 108.65.
We followed the Japanese economy, the third-largest economy in the world, to release housing data as the annual index of construction starts rose 0.3% from 8.7% in May, beating expectations for a 2.2% decline. In line with the consumer confidence reading, which showed a drop to 37.8 versus 38.7 in June, worse than expected at 38.5.
This comes hours after the Bank of Japan decided to keep rates unchanged at 0.10% amid maintaining the asset purchase program unchanged and future interest rate trends. With the Bank of Japan cutting its inflation and growth forecasts, Held by Bank of Japan Governor Haruhiko Kuroda in Tokyo, who noted his willingness to expand stimulus if needed.
On the other hand, investors are currently waiting for the US economy to release preliminary data for the labor market with the release of the index of change in private sector jobs, which may reflect the acceleration of job creation to 150 thousand jobs added to 102 thousand jobs added in June, before Hours of disclosure of the monthly report of non-agricultural jobs and unemployment rates in addition to the average income per hour for the month.
This comes before we also see later in the day by the world's largest economy reading the labor cost index, which may reflect a stable growth of 0.7%, unchanged from the first quarter, and before the disclosure of the Chicago Purchasing Managers Index May extend to 51.7 versus a contraction of 51.7 in June.
Leading to the release of the monetary policy statement of the Federal Open Market Committee meeting on July 30-31 and the Fed's decision on interest rates amid expectations that monetary policy makers will cut federal funds rates by 25 basis points to between 2% and 2% . This comes half an hour before the Fed's upcoming press conference, Jerome Powell.
Technical Analysis
The USD / JPY pair has been trading sideways since yesterday and stabilizes above SMA 50, noting that Stochastic is providing a positive cross signal now, supporting the resumption of the upside move to 108.93 and then opening the way towards our next positive target at 109.60.
Therefore, the bullish scenario will remain valid for the coming period provided that the price remains stable above 108.10.
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.