The US dollar fluctuated in a narrowly bullish range during the Asian session to see its rebound for the second session in five sessions from its lowest since January 10 against the Japanese yen following developments and economic data that followed the Japanese economy, the third largest economy in the world and on the brink of developments And economic data expected Tuesday by the US economy, the largest economy in the world.
At 06:04 GMT, the pair rose 0.14% to close at 108.60, compared with the opening levels at 108.45 after the pair reached a high of 108.64 and a low of 108.35.
We followed the Bank of Japan's release of the annual reading of the M2 lending index, which showed growth accelerated to 2.7% from 2.5% in April, beating expectations for a 2.6% growth rate, before we saw the initial reading Of the machinery equipment demand index, which showed a decline in the decline to 27.3% compared to 33.4% in April.
Otherwise, we followed yesterday. Japanese Prime Minister Shinzo Abe expressed his confidence in the Bank of Japan, explaining that he will push the monetary policy decision out of the Japanese central bank's jurisdiction, adding that if the risks to economic growth are high, the government will implement flexible macroeconomic policies, The same context, Japanese Finance Minister Taro Aso also reported yesterday that there is no change in plans to raise sales tax by next October.
On the other hand, investors are looking for the US economy to release the Producer Price Index (PPI), a preliminary index of inflationary pressures that could reflect a slower growth rate of 0.1% versus 0.2% in April. 1.9% versus 2.2% in the previous annual reading for April.
In the same context, the core reading of the PPI may accelerate the pace of growth to 0.2% from 0.1% in April, while the core annualized reading of the same index may show a slowdown in growth to 2.3% from 2.4% in the previous April reading , And comes hours before the disclosure of inflation data for the last month with the release of the Consumer Price Index on Wednesday.
USD/JPY pair is showing further bullishness towards the pivotal resistance of 108.80. We note that the SMA 50 is putting pressure on the price to protect the negative scenario suggested in our recent reports. Therefore, we are waiting for a bearish bounce to initial the 108.00 level, 106.75 as a next station.
On the other hand, it should be noted that the breach of 108.80 is considered the initial positive key to regain the bullish trend again.
The trading range for today is among the key support at 107.80 and resistance at 109.00.
The general trend for today is bearish.