03.09.2019
The US dollar fluctuated in a narrow uptrend range during the Asian session to see its fifth session rebound in seven sessions from its lowest since November 9, 2016 against the Japanese yen following the developments and economic data that followed from the Japanese economy, the world's third largest economy. Economic developments and data expected Tuesday by the world's largest economy.
At 06:22 AM GMT the USDJPY rose 0.04% to 106.28 levels from 106.24 opening levels, after hitting a session high of 106.39 and a low of 106.17.
The Japanese economy followed the release of the Bank of Japan's annual monetary base reading, which showed growth slowed to 2.8% from 3.7% in July, worse than expectations for a 2.9% slowdown. The Japanese central bank has started to use this indicator as its main operational target for the monetary base chart since April 2013.
On the other hand, investors are looking ahead to reveal the final reading of the manufacturing PMI by Markit on the US which may reflect a widening of 50.0 vs. a contraction of 49.9 in the initial reading of last month and versus a widening of 50.4 in July, comes before The Construction Spending reading, which reflects a rise of 0.3% against a decline of 1.3% in June.
Markets from the world's largest industrialized nations are also looking to reveal the ISM Manufacturing Index, which may show a steady expansion at 51.2, little changed from July, while the same price index reading could show contraction shrinking to 47.6 vs. 45.1, up to a member's speech. Federal Open Market Committee and Federal Reserve Bank President Eric Rosengren about the US economy at Stonehill College in Massachusetts.
USD / JPY is fluctuating around the 50 EMA recently, and the price remains below 106.70, which makes us hold onto our bearish outlook, targeting the breach of 106.06 to push towards 105.05 as the next major stop.
Keep in mind that breaching 106.70 will stop the negative scenario and lead the price to achieve intraday gains of 107.70 initially.
Expected trading range for today is between 105.40 support and 106.70 resistance.
Expected trend for today: Bearish.
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