The US dollar rallied during the Asian session to rebound to its ninth session in thirteen sessions from the lowest since November 9, 2016, indicating the highest since early August, when it tested the highest since late May against the Japanese yen following the developments and economic data It was followed by the Japanese economy and on the eve of developments and economic data expected on Wednesday by the US economy.
At 06:01 AM GMT, the USDJPY rose 0.22% to 107.78 levels from 107.54 opening levels, after hitting a six-week high of 107.85, while hitting a session low of 107.50. .
The Bank of Japan revealed that the manufacturing business statistics showed that the contraction shrank to 0.2 vs. 10.4 in the second quarter, beating expectations for a contraction to 7.1, while the business sector reading showed The overall industry expanded to 1.1 vs. 3.7 contraction in the second quarter, also outperforming expectations for a 1.0 contraction.
On the other hand, investors are awaiting the US economy, the largest economy in the world, to release the PPI reading, which is a preliminary indicator of inflationary pressures that may reflect the acceleration of stability at zero levels against the growth of 0.2% in July, while the core reading of the index may appear Growth is steady at 0.2%, as the annual reading of the same index may show stability at 1.7%.
In the same context, the core annual PPI reading may reflect a 2.2% vs. 2.1% advance in July, before we see the final release of the wholesale inventory index, which could show a stable growth of 0.2%, little changed from The initial reading for the month of July and against the stability at zero levels last June.
USDJPY is trading positively today to breach the 38.2% Fibonacci retracement level, which supports our continuation of the bullish trend, noting that our next target is at 108.74, which is the breach of the key rally towards 109.60 as the next stop.
Therefore, we will continue to favor the bullishness over the coming sessions, which is affected by the previously completed double bottom pattern, noting that the continuation of the expected rise depends on stability above 106.79.
Expected trading range for today is between 107.00 support and 108.50 resistance.
Expected trend for today: Bullish.