The dollar fell during the Asian session to see its rebound for the second session in four sessions of the highest since the end of the last year 2018 against the Japanese yen following developments and economic data that followed Monday on the Japanese economy and amid the lack of economic data by the US economy earlier this week, With the Federal Open Market Committee meeting.
At 0601 GMT, the USDJPY dropped 0.22% to 109.31 compared to the opening levels at 109.54 after recording a low of 109.27 and a high of 109.60.
We followed the Bank of Japan's release of the BOJ meeting minutes held on April 23, in which the central bank's monetary policymakers agreed to keep interest rates at 0.10%, in the shadow of the Bank of Japan's lenient policies to stimulate inflationary pressures and exit the third The largest economy in the world from the cycle of contraction that fell during the third quarter.
In the same vein, we followed at the end of last week the Bank of Japan Governor Kuroda Haruhiko Kuroda said that neutral interest rates could decline as long-term growth prospects fell in the shadow of demographic changes and that lower expectations could push central banks to cut interest rates. Lead to lower demand for credit and that this could make the financial system less stable.
Elsewhere, markets are looking for the outcome of the FOMC meeting in Washington on 29-30 of this month amid expectations that the committee, led by Federal Reserve Governor Jerome Powell, will remain on the federal funds rate between 2.25% and 2.50% Raised four times last year, as the move to cut back on government bond purchases and mortgage bonds by $ 50 billion a month.
Technical Analysis
The USD / JPY pair is back to the downside and is approaching the pivotal support of 109.16, accompanied by stochastic access to oversold areas, awaiting the pair to stimulate the resumption of the upside correction targeting 110.24 as the next stop.
SMA 50 is trying to protect the suggested positive scenario, which will remain intact unless the 109.16 level is broken and stability below it.
The trading range for today is expected among the key support at 108.40 and the resistance at 110.24
Support and resistance:
Support: 109.16-108.40-107.82
Resistance: 109.83-110.24-110.73
The general trend for today is bullish