The US dollar fluctuated in a narrow uptrend during the Asian session against the Japanese yen following the economic developments and data that followed from the Japanese economy and on the eve of developments and economic data expected on Wednesday by the US economy, which includes the testimony of the ...
The US dollar fluctuated in a narrow uptrend during the Asian session against the Japanese yen following the economic developments and data that followed from the Japanese economy and on the eve of developments and economic data expected on Wednesday by the US economy, which includes the testimony of the Federal Reserve Governor Jerome Powell before Congress in Washington.
At 06:07 AM GMT, the USDJPY rose 0.08% to 109.10 levels from the opening levels of 109.01, after hitting a session high of 109.11, while reaching a low of 108.87.
The Japanese economy followed the release of inflation data with the release of the producer price index, which is a preliminary indicator of inflationary pressures, which showed 1.1% growth versus steady at zero levels last September, below expectations for a growth of 1.2%, while the annual reading showed The index itself shrank deflation to 0.4% from 1.1% in September, also worse than expectations for a contraction of 0.3%.
On the other hand, investors are awaiting the US economy to release inflation data with the release of the CPI reading which may reflect the acceleration of growth to 0.3% versus the steady zero in September, while the core reading of the same indicator may show growth accelerated to 0.2% vs. 0.1 The annualized reading of the index may show growth stabilizing at 1.7%, while the core annual reading of the index may reflect the stability of growth at 2.4%.
This comes before we see the start of the semi-annual testimony of the Federal Reserve Governor Jerome Powell before the US Congress in Washington, where he is expected to give the first half of his semi-annual testimony on policy to the Financial Services Committee in the House of Representatives, before we witness the US Treasury disclosure On the reading of the federal budget for the month of October.
USD / JPY is back to fluctuate at SMA 50 after testing 109.33 yesterday, accompanied by the arrival of stochastic to oversold areas, waiting for the price to stimulate the resumption of the bullish inclination to breach the mentioned level and confirm the extension of the bullish wave in the intraday and short term, noting that our target The following is at 110.50.
Therefore, we continue to favor the bullish trend provided it holds above 108.40, depending on the regularity of the trading within the ascending channel shown in the above chart.
Expected trading range for today is between 108.40 support and 110.00 resistance.
Expected trend for today: Bullish.