JPY analysis 07.08.2019

The US dollar fell during the Asian session to witness a rebound for the fourth session in five sessions from the highest since May 31 against the Japanese yen after the release of a sincere report by the Bank of Japan, which is issued after ten days of the Bank of Japan and on the eve of developments The economic data expected on Wednesday by the US economy, the largest economy in the world.

At 06:02 AM GMT, the USDJPY fell 0.18% to 106.28 compared to the opening levels of 106.47, the pair's highest level during the session, while the pair reached its lowest level during 105.93.

Investors are now awaiting the outcome of FOMC member and Chicago Fed Chairman Charles Evans at a media Iftar hosted by the Federal Reserve Bank of Chicago, before we also see the US economy release the consumer credit reading which may reflect a drop to 16.4. $ Billion versus $ 17.1 billion last May.

Technical Analysis

USD / JPY rebounded significantly after testing the 38.2% Fibonacci retracement level yesterday, trading at 106.00 now, supporting our continuation of the bearish trend, noting that Stochastic is providing a negative crossover signal that supports further downside.

Our first target is at 104.60, and breaking it will push the price to 104.60 as the next stop, while stability below 106.97 is an important condition for the continuation of the expected decline.

Expected trading range for today is between 105.30 support and 106.90 resistance.

The general trend for today is bearish.