The US dollar fluctuated in a narrow range slipping towards the Asian session to see its rebound for the second consecutive session of its highest since December 27 against the Japanese Yen following developments and economic data that followed on the Japanese economy and on the eve of developments and economic data expected on Friday from ahead of the US economy.
At 06:05 GMT, the USDJPY dropped 0.11% to 110.36 compared to the opening levels at 110.48 after the pair hit a session low of 110.26 and a high of 110.55.
On the Japanese economy, we saw the final reading of the Industrial Production Index, which showed a steady decline of 0.1%, unchanged from the previous December reading, in line with expectations, compared to a 1.0% decline in November. The final annual reading of the index showed the stability of the decline at 1.9% and showed a reading of energy utilization rate fell 1.9% compared to a rise of 1.0%.
On the other hand, investors are looking ahead to the reading of the import price index, which may reflect a contraction of the decline to 0.1% from 1.0% in December, in conjunction with the New York Manufacturing Index, from 7.1 to 3.9 in January.
Before the release of the industrial production index, which may reflect a slowdown in growth to 0.1% versus 0.3% in December, coinciding with the release of the energy utilization index reading, which could show a rapid growth rate of 78.8% versus 78.7% led to the first reading of the University of Michigan Consumer Confidence Index, which may reflect a widening to 93.3 versus 91.2 in January.
Technical analysis:
The USD/JPY pair rebounded yesterday after testing the 111.00 barriers to testing the pivotal support of 110.24 now, accompanied by the emergence of clear saturation signals in the Stochastic, while the SMA 50 meets the above support to add more strength to it.
Therefore, these factors encourage us to continue with the bullishness in the coming sessions provided that the price remains stable above 110.24, with the reminder that our next target resides at 111.56.
The trading range for today is expected among the support at 110.00 and the resistance at 111.00.
The general trend for today is bullish.