The US dollar rose during the Asian session to its highest since December 28 against the Japanese Yen following the developments and economic data that followed the Japanese economy and the talk of a member of the Federal Committee and the President of the Bank of Kansas City Federal Reserve George George on the economic prospects at the Kansas City Public Library and The economic developments are expected to be discussed Wednesday by the US economy.
At 05:57 GMT, the pair rose 0.13% to 110.62 compared with the opening levels at 110.48 after the pair reached a seven-week high of 110.70, while the lowest level at 110.43.
We followed the Japanese economy to release inflation data as the producer price index, a preliminary indicator of inflationary pressures, which showed a 0.6% contraction of the recession, remained unchanged from December, worse than expectations for shrinking deflation. 0.2%, while the annual reading of the same index showed a slowdown of growth to 0.6% compared to 1.5%, also worse than expectations at 1.0%.
On the other hand, investors are looking ahead to the US economy to release inflation data with the release of the consumer price index, which may reflect 0.1 growth versus a 0.1% contraction in December, while the core reading of the index itself may show a 0.2% From its December level. The index's annual reading may reflect a slowdown in growth to 1.5% from 1.9%.
In the same context, the annual Core CPI reading may show a slowdown in growth to 2.1% versus 2.2% in the previous December reading before we see the US Treasury Department reading the Treasury budget, which may reflect a contraction of the deficit to its value 10.5 billion compared with 204.9 billion last November.
Technical Analysis
The USD / JPY pair continues to rise gradually away from the 110.24 level, and we notice that the price is organized within the ascending channel shown in the image, carried by SMA 50.
Therefore, the area is open to heading towards the next target at 111.56, with the continuation of the upside wave dependent on stability above 110.24.
The trading range for today is expected among the support at 110.00 and the resistance at 111.56.
The general trend for today is bullish.