The US dollar fluctuated in a narrow range, tilted lower during the Asian session to witness a rebound for the second session from its highest since late May against the Japanese yen following the developments and economic data that followed from the Japanese economy, the world's third largest economy and on the eve of developments and economic data expected on Friday from The US economy has accepted the largest economy in the world, which includes the FOMC members' speech.
At 06:08 AM GMT the USDJPY fell 0.03% to 109.25 levels from the opening levels of 109.28, after hitting a session low of 109.15, and a high of 109.41.
The Japanese economy followed the release of the annual household spending index which showed growth accelerated to 9.5% from 1.0% last August, beating expectations of 7.1%. In August, it also outperformed expectations for a 0.1% rise, leading to a reading of leading indicators showing a widening of 92.2 in line with expectations, up from 91.9 in August.
On the other hand, investors are looking forward to the outcome of the FOMC member and the Chairman of the Federal Reserve Bank of New York, John Williams, about the weaknesses in the global financial system during a dinner in New York, and that comes before we see another Fed committee member, the Deputy Governor of the Federal Reserve. Concluding Remarks of the San Francisco Fed Research Conference.
Investors are also awaiting the US economy's final wholesale inventories figure, which could show a 0.3% decline, unchanged from the preliminary September reading and a 0.2% rise in August, coinciding with the release of the University of Michigan's preliminary reading of confidence. Consumers may reflect an expansion to 96.0 vs. 95.5 last October.
The USDJPY resumed its positive trading significantly yesterday and started attempts to breach the 109.33 level, reinforcing expectations for the continuation of the bullish trend over the intraday and short term, which is regulated within the ascending channel shown above, waiting for the bullish wave to extend towards 110.50.
SMA 50 continues to support the suggested bullish wave, which requires stability above 108.40.
Expected trading range for today is between 108.60 support and 110.00 resistance.
Expected trend for today: Bullish.