The US dollar rose during the US session to rebound to the fourth session of its lowest since June 26 against the Japanese yen following developments and economic data that followed the economy of Japan, the third largest economy in the world and on the eve of developments and economic data expected Tuesday by the US economy The world's largest economy.
The pair rose 0.28% to 108.17 from the opening level at 107.87, after reaching a high of 108.19 and a low of 107.83.
We have followed the Japanese economy to release inflation data with the release of the Core CPI, which showed a slower growth to 0.6% in line with expectations versus 0.7% in May. Otherwise, we followed at the weekend Japanese Prime Minister Shinzo Abe That his government will take many measures to deal with sales tax and that steps will be taken to avoid negative risks to the economy.
Japan's Prime Minister Abe, whose ruling coalition won a majority in the upper house of the Japanese parliament on Sunday, said his government would make the economy its top priority in its fiscal policy, saying that his country would do its utmost to ease tensions between the United States and Iran. , Adding that Tokyo wants to play an important role by easing tensions and in particular that it has a long history of friendship with Tehran.
In another context, we also followed on Monday the talk of Governor of the Bank of Japan Haruhiko Kuroda at the International Monetary Fund in Washington, DC, in which he noted that his country's economy has overcome the state of deflationary inflation supported by monetary easing measures, and that the Bank of Japan continues to facilitate cash with all strength until To achieve the inflation target of 2%, adding that the Japanese central bank is closely monitoring the developments affecting the economy in the shadow of uncertainty about the pace of growth of the global economy, which has escalated recently.
On the other hand, investors are currently waiting for the US economy to release housing market data with the Home Price Index reading, which may reflect slowing growth to 0.3% versus 0.4% in April before we see the Existing Home Sales Index May show a 2.5% rise to 5.35 million homes versus a 0.1% drop at 5.34 million homes in May and coincide with the Richmond Industrial Average reading, which may extend to 5 to 3 in June.
The USD / JPY pair is testing the 108.10 pivotal resistance and is still below it, keeping the bearish scenario intact so far, awaiting the resumption of the bearish bias to visit 106.78, which represents the next negative target.
Keep in mind that a breach of 108.10 and stability above it will bring the pair back to the upside correction, with the next target at 108.93.
The trading range for today is among the key support at 108.20 and resistance at 108.50
The general trend for today is bearish