The US dollar fluctuated in a narrow upward range during the Asian session to see its highest since December 27 against the Japanese Yen following developments and economic data that followed the Japanese economy, the third largest economy in the world and on the eve of developments and economic data expected on Thursday by The US economy is the largest economy in the world.
At 05:57 GMT, the USDJPY rose 0.04% to 111.05 from the opening levels of 111.01 after the pair reached a seven-week high of 111.13, while the lowest level at 110.87.
We followed the Japanese economy to reveal the preliminary reading of GDP for the fourth quarter, which showed a 0.3% expansion versus 0.6% contraction in the third quarter, below expectations of 0.4% growth. The index's annual reading showed a 1.4% expansion in line with expectations versus contraction 2.5%, while the annual reading of the stabilizing index showed a contraction of 0.3% above expectations of contraction to 0.4%.
On the other hand, investors are currently looking for the US economy to reveal the reading of retail sales, which account for about half of consumer spending, which represents more than two thirds of the United States GDP, which may reflect a slowdown in growth to 0.1% compared to 0.2% in November last year, While the core reading of the retail sales index may show stability at zero versus 0.2% in November.
The markets are also looking for the PPI, which is a preliminary index of inflationary pressures, which could reflect a 0.1% expansion versus a 0.2% contraction in December, while the annual reading of the same index may show a slowdown of growth to 2.1% versus 2.5% in the previous annual reading for the month of December.
The core reading of the PPI shows a 0.2% growth versus 0.1% contraction in December, while the core annualized reading of the same index may show a slowdown in growth to 2.5% versus 2.7% in the previous December reading, A reading of the index of aid applications, which may reflect a decline of 9 thousand requests to 225 thousand applications during the week of the ninth of this month.
Technical Analysis
The USD / JPY pair is showing further bullishness to creep towards our awaited target at 111.56, steady within the bullish channel that has been holding the price since the beginning of last month, so that the bullish trend will remain for the coming period, noting that a breach of this level will stimulate the price to achieve further gains. Extending to 113.70 in the near term.
We note that achieving the proposed targets requires stability above 110.24.
The trading range for today is among the key support at 110.24 and resistance at 111.80
The general trend for today is bullish