The US dollar fluctuated in a narrow range that tends to rise during the Asian session, to witness its rebound for the second session in four sessions from its lowest since September 21, when it tested its lowest since March 12 against the Japanese yen following developments and the economic data that followed it on the economy On the cusp of economic developments and data expected Monday by the US economy, the largest in the world.
At exactly 07:05 GMT, the US dollar against the Japanese yen rose by 0.11% to 104.88 levels compared to the opening levels at 104.76, after the pair achieved its highest level during the session's trading at 104.93, while it reached its lowest level at 104.66.
We have followed up on the Japanese economy, the second largest in Asia and the third largest in the world, revealing inflation data, with the release of the annual reading of the services price index by the Bank of Japan for the month of September, which showed an acceleration of the growth rate to 1.3% compared to 1.1%, which was revised from 1.0 growth. % In the previous annual reading for the month of August, contrary to expectations that indicated a growth of 1.0%.
On the other hand, investors are waiting for the US economy to reveal the housing market data, with the release of the new home sales index, which may indicate a rise of 2.8% to about 1,025 thousand homes compared to a rise of 4.8% at 1,011 thousand homes last August, and this comes amid The chances that it will pass the second package of stimulus before the upcoming presidential elections next week diminish with the passage of time.
Other than that, we recently followed up on the United States of America reported a record number of new cases of Coronavirus, and the result of US Vice President Mike Pence tested positive, which raised concerns about the possibility of the Coronavirus outbreak again in the White House, and this comes in conjunction with the continued rise of infected cases In Europe and other parts of the world.
Technical analysis
The dollar versus yen pair shows some slight bullish tendency to approach the 105.00 barrier, accompanied by the stochastic indicator losing positive momentum again, while the SMA 50 continues to press negatively on the price.
From here, these factors support the chances of continuing the expected bearish trend for the upcoming period, whose next main target is at 103.65, while stability below 105.20 represents an important condition for the continuation of the suggested decline.
The expected trading range for today is between 104.00 support and 105.20 resistance.
The expected general trend for today: Bearish.