10.09.2019
The US dollar fluctuated in a narrow uptrend range during the Asian session to witness the bounce for the eighth session in the twelve sessions of the lowest since November 9, 2016, showing the highest since August 2 against the Japanese yen following the developments and economic data that followed The Japanese economy is on the threshold of economic developments and data expected on Tuesday by the largest US economy in the world.
At 06:16 am GMT, the US dollar against the Japanese yen rose 0.11% to 107.36 levels compared to the opening levels at 107.24, after the pair reached its highest level in six weeks at 107.50, while the lowest level during the session trading at 107.18.
Japan's third largest economy followed the release of the Bank of Japan's annual bank lending index, which showed growth accelerated to 2.4% in line with expectations, compared to 2.3% in the previous annual reading last July. We are witnessing the release of the annual preliminary reading of the Machinery Equipment Orders which showed a decline to 37.1% from 33.0% in July.
On the other hand, investors are awaiting the US economy for the release of the employment and employment turnover, which may reflect a decline to 7.31 million compared to 7.35 million in June, following hours of US labor market data for August. Last Friday showed the unemployment rate stabilized at 3.7% for the third month in a row in line with expectations.
In the same context, we also followed last weekend's Average Hourly Earnings showing that the pace of growth accelerated to 0.4% compared to the previous reading for July and expectations of 0.3%, while the change in jobs index in sectors other than agriculture at the time showed a slowing pace of creation The number of jobs added to 130 thousand jobs compared to 159 thousand jobs added in July, contrary to expectations that indicated 163 thousand jobs added.
USDJPY traded positively yesterday to move away from 106.70, reinforcing expectations for the continuation of the bullish trend in the coming period, and the way is open for achieving our positive targets starting at 108.30 and extending to 109.30.
The positive effect of the double bottom pattern is still effective, noting the importance of stability above 106.70 to continue the expected rally.
Expected trading range for today is between 106.70 support and 108.30 resistance.
Expected trend for today: Bullish.
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