The US dollar fell during the American session to see its rebound for the second session in a row from its highest since May 31 against the Japanese yen following developments and economic data that followed on the Japanese economy and on the eve of developments and economic data expected Thursday by the US economy, which includes the second half of Federal Reserve Governor Grum Powell's half-yearly testimony to Congress in Washington.
At 05:51 GMT, the USDJPY dropped 0.47% to 107.95 from the opening levels at 108.46, the pair's highest level during the session, while the lowest pair in six weeks at 107.86.
We followed the Japanese economy, the third largest industrial country in the world, to release industrial sector data with the Tertiary Industrial Index, which showed a decline of 0.2% from 0.8% in April, worse than the 0.2% drop. Hours of the final reading of industrial production, which may reflect the stability of growth at 2.3%, unchanged from the preliminary reading, versus 0.6% growth in April.
On the other hand, the markets are currently looking for the US economy to release inflation data with the release of the consumer price index, which may reflect zero-point stability versus 0.1% growth in May, while the core reading of the same index may show growth accelerating to 0.2% versus 0.1%. The annualized reading of the index may show a slowdown in growth to 1.6% from 1.8%, and the annual reading of the core may reflect growth stability of 2.0%.
This comes in conjunction with the publication of the requests for aid for the week ending on the sixth of this month, which may reflect a decline of 1 thousand applications to 220 thousand, and may indicate requests for continuing assistance for the week ending on June 29 decrease by 4 thousand applications to 1,682 thousand, To the second half of Federal Reserve Governor Jerome Powell's semi-annual testimony on monetary policy before the Senate Banking Committee.
We would like to point out that Powell made his first half-yearly testimony to Congress on monetary policy before the House Financial Services Committee on Wednesday, before the minutes of the Federal Open Market Committee meeting held on June 18-19, During which monetary policy makers at the Federal Reserve raised interest rates between 2.25% and 2.50% for the fourth consecutive meeting.
USD/JPY failed to breach the 108.93 level, retreating strongly and breaching 108.10 and settling below it, stopping the bullish corrective scenario and pressuring the pair to resume the main descending path again, paving the way for the recent low at 106.78 as the next major stop.
Therefore, the bearish trend will be expected during the coming sessions unless the price is able to breach the level of 108.10 and stability above it again.
The trading range for today is expected among the support at 107.00 and the resistance at 108.50.
The general trend for today is bearish.