The US dollar fell during the Asian session to witness a rebound for the second session in three sessions from its highest since August 15 against the Japanese yen following the developments and economic data that followed from the Japanese economy, the world's third largest economy and on the eve of developments and economic data expected on Tuesday before The US economy is the largest in the world.
At 06:12 am GMT, the USDJPY fell 0.42% to 105.67 levels compared to the opening levels at 106.13, after the pair reached its lowest level during the session at 105.65, while the highest level at 106.18.
The Japanese economy followed the release of the annual Services Price Index which showed growth slowed to 0.5% vs. 0.7% in the previous month of June, worse than expectations of 0.5%. This came before we saw the release of inflation data with the release of the reading. The core annual CPI figure, which showed growth steady at 0.6%, little changed from June, is in line with expectations.
On the other hand, investors are currently awaiting the US economy to release housing market data with the release of the house price index, which may reflect the acceleration of the pace of growth in June to 0.2% compared to 0.1% in May, while the reading of the same indicator may show For the second quarter, the pace of growth slowed to 0.2% from 0.1% in the first fourth.
This comes in conjunction with the release of the S&P House Price Index, which may show the pace of growth accelerated to 2.5% vs. 2.4% last May, and before we see the release of the Consumer Confidence reading which may show a widening of the expansion to 129.3 vs. 135.7 Last July, coinciding with the release of the Richmond Manufacturing Index, which may show contraction shrank to 2 vs. 12 in July.
Technical Analysis
The USDJPY provided significant positive trading yesterday but stopped at SMA 50, which formed a good resistance barrier against the price, to start bouncing down with the opening of today's trading, which keeps the main bearish scenario valid so far, supported by stochastic negativity, waiting to exceed The level of 105.05 opens the way for the next target towards 104.00.
The continuation of the suggested bearish wave requires stability below 106.70.
Expected trading range for today is between 104.80 support and 106.20 resistance.
Expected trend for today: Bearish.