The US dollar fluctuated in a narrow uptrend range during the Asian session to witness the rebound for the second session in three sessions, the lowest since November 9, 2016 against the Japanese yen amid the lack of economic data on Wednesday by the Japanese economy, the world's third largest economy and the US economy is the largest economy in the world.
At 06:19 am GMT, the USDJPY rose 0.05% to 105.80 levels from 105.75 opening levels, after hitting a session high of 105.89 and a low of 105.65.
On Tuesday, US President Donald Trump said he was not considering imposing tariffs on cars imported from Japan at the moment, adding that the US had reached a preliminary agreement with Japan on trade relations between the two countries, adding that these trends and others aimed at re-course Correct between the United States and other countries and to deal fairly commercially.
On the other hand, Japanese Prime Minister Shinzo Abe noted that the importance of the stability of trade relations between Tokyo and Washington is not only for the economy of Japan and the United States, but for the global economy, explaining that he hopes the negotiations will reach positive results between the two parties and in particular that they can contribute to the stability of the global economy. Japan is working to assess the trade tensions between the two parties and their effects on the Japanese economy at the moment.
On the other hand, markets are looking ahead on Thursday by the US economy to reveal the second reading of GDP, which may reflect the expansion of the largest economy in the world 2.0% in the second quarter compared to the previous initial reading of 2.1% growth, while the second reading of GDP may show measured Prices have stabilized at 2.4%, little changed from the previous quarter's preliminary reading.
Technical Analysis
USD / JPY is trading below SMA 50 which continues to protect the negative scenario suggested in our recent reports, awaiting the resumption of the bearish bias to test 105.05 initially, noting that breaching this level will push the price to 104.00 directly.
Therefore, the bearish trend will remain valid and likely for today unless the price pushes to breach the 106.70 level and hold above it.
Expected trading range for today is between 105.00 support and 106.50 resistance.
Expected trend for today: Bearish.