The US dollar fluctuated in a narrow bullish range during the Asian session to witness a rebound to the fourth session in six sessions from its lowest since February 11 against the Japanese yen following developments and economic data that followed the Japanese economy, the third largest economy in the world and on the threshold of the recent members The Federal Open Market Committee in New York later on Friday.
At 06:13 GMT, the pair rose 0.06% to 110.77 compared to the opening levels at 110.70 after recording a high of 110.81 and a low of 110.63.
On the Japanese economy, the national consumer price index (CPI), which showed a slowdown in growth to 0.2% in line with expectations, rose from 0.3% in the previous reading for December, while the annual reading of the same index excludes fresh food excluding energy and fresh food Growth accelerated to 0.8% in line with expectations versus 0.9%, and to 0.4% also compatible with expectations versus 0.3%.
Otherwise, we followed Wednesday the Japanese Finance Minister Taro Aso said that the issues related to the yen's currency were not addressed in the recent trade talks with the United States last September, and that he will discuss this with US Trade Representative Robert Whitehouse himself later, because The yen has been affected by ongoing trade talks between Washington and Beijing, which investors always see as a safe haven to trade with.
This came hours after Bank of Japan Governor Haruhiko Kuroda on Tuesday told the Japanese parliament that the Bank of Japan was ready to expand stimulus if the yen's strong rise hurt the economy and hampered efforts to push inflationary pressures to the Bank of Japan's target of 2 percent, Among the Bank of Japan's expansionary policies is the interest rate cut and the size of the asset purchase program.
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
On the other hand, the Fed's Deputy Governor Richard Clarida will later address us to a speech entitled "Federal Reserve Review of Monetary Policy Strategies, Financial Instruments, and Communications" at the US Monetary Policy Forum, before we see the participation of St. Louis Governor James Pollard And Federal Reserve Governor Randall Quarles at a panel discussion entitled "The Future of the Federal Reserve Balance Sheet."
This came hours after the minutes of the Federal Open Market Committee meeting, which was held on 29-30 January, during which Federal Reserve policy makers kept interest rates at between 2.25% and 2.50% Cut bond repurchase by $ 50 billion a month, and the committee said it was determined to be patient and monitor economic data before resuming tightening monetary policy.
Technical analysis:
USD / JPY continues to fluctuate sideways, and as the price is above 110.24, the bullish scenario will remain effective for the coming period, supported by the 50 moving average that continues to carry the price from the bottom, while we are waiting for a 111.56 visit as the next major station.
The trading range for today is expected among the support at 110.24 and the resistance at 111.56.
The general trend for today is bullish.