The US dollar fell during the US session to rebound for the third consecutive session from its highest since late May, showing its lowest since January 3, when it tested its lowest since March 26, 2018 against the Japanese yen Amid a lack of economic data earlier this week by the Japanese economy and on the eve of developments and economic data expected on Monday by the US economy, the largest economy in the world.
At 06:07 GMT, the USDJPY declined 0.61% to 105.94 compared with the opening levels at 106.59, after reaching a seven-month low of 105.79, while the highest at 106.68 .
Investors are currently waiting for the US economy to publish the final index of the Institute of Supply of Service by Markit for the United States, which may reflect the stability of the widest at 52.2, unchanged from the preliminary reading for the month of July compared to 51.5 in June, before the disclosure of the reading Of the Institute of Supply Services, which may show a breadth of 55.5 versus 55.1 in June.
US President Donald Trump's recent decision to impose a $ 10 billion tariff on Chinese goods and goods worth $ 300 billion has weighed on investors' appetite for risk amid escalating US trade protectionism and the worsening trade war between the world's two biggest economists. , Prompting them to turn liquidity into safe havens, including low-yielding currencies, led by the Japanese yen.
The USD / JPY pair breached the 106.78 level and is pushing down strongly with the opening of today's trading, approaching our negative target at 105.65, and we expect the short-term downtrend to extend to 104.60 as a major next stop.
Therefore, the bearishness will remain in the short and medium term, noting that stability below 106.78 is important for the continuation of the suggested bearish wave.
The trading range for today is among the key support at 105.00 and resistance at 106.60
The general trend for today is bearish.