JPY technical analysis 05.07.2019

The US dollar fluctuated in a narrowly bullish range during the US session to see its fifth session rebound in nine sessions from its lowest since January 3 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 Friday by the US economy, the largest economy in the world.

At 05:51 am GMT, the pair rose 0.06% to 107.88 compared to the opening levels at 107.82 after the pair reached a high of 107.89 and a low of 107.78.

On the Japanese economy, we saw the annual reading of the Household Spending Index, which showed growth accelerated to 4.0% from 1.3% in April, beating expectations of a 1.4% growth rate. The contraction of the widening to 95.2 versus 95.9 in April showed a worse than expected 95.3.

On the other hand, investors are looking for the US economy to reveal last month's labor market data, which could reflect a stable unemployment rate at its lowest level in 49 years at 3.6%, unchanged from May, amid expectations that the reading of the Change in jobs for sectors Excluding agriculture, job creation accelerated to 164,000 versus 75,000, and the median hourly earnings index accelerated to 0.3% from 0.2%.

This comes after the disclosure last Wednesday of preliminary data for the US labor market, which showed the acceleration of job creation to 102 thousand according to the index of change in private sector jobs, compared to 41 thousand in May, below expectations at 140 thousand, Of the US is among the important reports that weigh heavily on the decisions and directions of monetary policy makers at the Fed.

Technical Analysis

The USD/JPY pair has been trading sideways and narrow range since yesterday and has pushed the price to move out of the channel, but the main bearish trend remains intact with steady price below 108.10, supported by negative pressure formed by SMA 50, with the next key target at 106.78.

The trading range for today is expected among the support at 107.00 and the resistance at 108.40.

The general trend for today is bearish.