The US dollar fluctuated in a tight range slipping into the Asian session against the Japanese Yen after the Federal Reserve Bank of St. Louis and Federal Open Market Committee member James Pollard on monetary policy following economic developments and data followed Friday by the Japanese economy, the world's third-largest economy.
At 6:01 am GMT, the pair dropped 0.08% to 109.73, compared with the opening levels at 109.82, after reaching a low of 109.65, while the highest at 109.84.
We have followed the Japanese economy to reveal the annual reading of the index of average wages, which showed the acceleration of growth to 1.8% compared to the annualized last November and expectations of 1.7%, while the annual reading of the index of average cash income accelerated growth to 1.4% compared to 0.8 %, Below expectations for accelerated growth to 1.7%.
This came in line with the annual reading of the Household Spending Index, which showed a 0.1% rise compared to a 0.6% drop in November's annual reading, below expectations of a 0.8% rise. Before we saw the release of the current account reading, From 457 billion yen to 757 billion yen in November, worse than the forecast of 469 billion yen.
In the same context, the seasonally adjusted CPI showed a surplus widening to 1,562 billion yen from 1,439 billion yen in November, exceeding expectations of 1,502 billion yen, coinciding with the release of the annual reading of the bank lending index, which showed stable growth At 2.4% during January, in line with expectations.
This was before we saw the release of the Echo Watchers statistical review of the current and future situation of the last month by the Japanese Cabinet Office, which showed the current contraction of the current situation to 45.6 compared to 46.8 in the previous reading for the month of December last, contrary to expectations at 48.5, while The contraction of future conditions contracted to 49.4 versus 47.9, beating expectations that the contraction of the contraction to 48.1.
This comes hours after Bank of Japan Governor Haruhiko Kuroda said Wednesday that the Japanese economy has improved significantly from 2013 and inflationary expectations of inflation have improved recently, but inflation has not reached the target of the central bank yet, adding that inflationary pressures may be accelerating The pace of growth gradually towards the target two percent.
Kuroda noted that the expansion of the Bank of Japan's monetary base will not help stimulate the Japanese economy, adding that the expansion of the monetary base leads to a decline in real interest rates, resulting in a drop in bank interest on loans, following remarks by Japanese Prime Minister Shinzo Abe that The Bank of Japan has not met the inflation target yet and it is focused on supporting the Japanese labor market.
The Japanese government announced earlier this month a ten-day holiday from Saturday 27 April to Monday, May 6 next year for the celebrations of Japan's rise of the new emperor to rule there during the official holiday, and that to be crowned Crown Prince at the beginning of May, and we wish to point out that this six-day holiday will be the longest in Japan's history.
Technical Analysis
USD / JPY is showing more sideways trading near SMA 50, noting that Stochastic is attempting to gain positive momentum gradually to support chances of resuming the upside move which is based on stability above 109.16, while its main targets start at 110.24 and extend to go away to 111.56 after breaching the previous level.
The trading range for today is expected among the support at 109.16 and the resistance at 110.70
The general trend for today is bullish